XRP’s Technical Structure Shows Signs of Further Decline
Following several days of consistent capital outflows, XRP’s technical setup appears to be signaling more trouble ahead. The asset is currently trading just above the $2 mark, which has served as a structural floor for months now. But fresh analysis suggests this support level is under sustained pressure, putting downside targets back into focus.
Analyst Ali Martinez shared his outlook on December 13, noting that on higher time frames, XRP has shifted from strong upside expansion into a clear downtrend. The pattern shows lower highs and lower lows, which typically indicates weakening momentum.
Key Price Levels Under Pressure
XRP reached above $3.40 earlier this year, but that momentum faded as the price broke below critical supports at $2.60 and $2.25. Each subsequent rebound has been weaker than the last, pointing to declining bullish conviction and what looks like a firmly bearish market structure.
The current situation involves XRP consolidating just above $2, with tightening price action and lower volatility. While this might signal indecision, after an extended decline, it often points to downside continuation rather than recovery. I think that’s worth keeping in mind.
Technically speaking, $2 represents both a psychological and structural support for XRP. A decisive break below this level would confirm the loss of long-term support and potentially open the way for a drop toward $1.20. That $1.20 level aligns with past consolidation areas and historical reactions. Once $2 fails, selling pressure could accelerate as stop-loss orders get triggered.
Broader Market Context and Technical Indicators
In recent sessions, XRP has been weighed down by broader cryptocurrency market sentiment. The asset briefly dipped below $2 alongside reported outflows of about $6 billion across the market. That’s not insignificant.
Still, there are some hints of possible stabilization. ETF inflows remain relatively strong, and investors appear to be moving tokens off exchanges. This can sometimes precede price stabilization or recovery, though it’s not a guarantee.
At press time, XRP was trading at $2.04, up about 0.5% over the past 24 hours. On the weekly chart, the asset posted a similar gain. But these minor upticks don’t change the overall technical picture.
XRP remains below both its 50-day simple moving average of $2.27 and its 200-day SMA of $2.60. This setup signals a persistent downtrend across both short- and long-term horizons. The wider gap to the 200-day average points to deeper bearish momentum, which is concerning.
The 14-day Relative Strength Index sits at 41.51, which is in neutral territory but leans toward mild oversold conditions. This suggests selling pressure might be easing somewhat, though not yet at levels that typically trigger a strong rebound. It’s a mixed signal, really.
What Comes Next
The key thing to watch is that $2 support level. If it holds, we might see some stabilization. But if it breaks, the path toward $1.20 becomes more likely. The broader market sentiment will play a role too, of course.
It’s worth noting that technical analysis provides probabilities, not certainties. Market conditions can change quickly, especially in the cryptocurrency space. But based on the current structure, the risk appears tilted to the downside for XRP in the near term.
