XRP’s price chart flashed a clear warning signal on December 16, 2025, as it decisively broke below a crucial support level. The token tumbled toward $1.87, marking a significant technical deterioration that has traders bracing for further downside. This move is more than a simple dip; it represents a breach of a level that had held through multiple tests in recent weeks, fundamentally shifting the market’s structure and signaling heightened selling pressure.
The Technical Picture Turns Bearish
The breakdown was both decisive and concerning for market technicians. XRP didn’t just dip below $1.93; it did so with conviction, accompanied by trading volume that surged to 246% above the 24-hour average. This high-volume rejection confirms that larger market participants were actively involved in the sell-off, turning the former support zone into a new resistance ceiling. The immediate outlook now hinges on a series of lower support levels, with $1.85 being the next focal point for potential buyer intervention. Analysts warn that a failure to hold here could open the door to a deeper slide toward $1.75 or even $1.50. The broader chart structure remains weak, with the price trading well below its key daily moving averages, which reinforces the dominant bearish trend.
Whale Exodus Drives the Decline
A primary force behind the sustained pressure is a massive exodus of large holders, commonly known as “whales”. Over the past four weeks, these entities have moved a staggering 1.18 billion XRP, likely to exchanges for sale. This persistent distribution from the largest wallets creates a consistent overhang of supply that has overwhelmed retail buying interest. The sentiment among smaller traders is notably cautious, reflected in subdued activity in the futures market where open interest remains significantly lower than its July peak. This combination of aggressive whale selling and timid retail participation has made it nearly impossible for XRP to stage a meaningful recovery, trapping it in a pattern of lower highs.
A Stark Divergence: Institutional Accumulation Emerges
In a striking contrast to the weak price action and whale distribution, institutional investment tells a completely different story. U.S. spot XRP exchange-traded funds (ETFs) have quietly achieved a remarkable milestone, recording 30 consecutive days of net inflows since their launch in November. These regulated vehicles have accumulated approximately $1.18 billion in assets, a clear sign that professional investors are using the price weakness to build long-term positions. This divergence is profound; while whales sell and the price falls, institutions are steadily buying through ETFs, often on days when Bitcoin and Ethereum funds see outflows. This suggests a strategic rotation into an asset that many view as having achieved rare regulatory clarity and possesses a tangible use case in cross-border payments.
The current state of XRP is a tale of two markets. The technical breakdown and whale selling paint a bleak short-term picture, demanding caution from traders. Yet, the unwavering institutional accumulation via ETFs suggests a strong undercurrent of long-term belief. The token now sits at a crossroads, where the battle between immediate distribution and strategic accumulation will determine whether it finds footing at lower support or continues its descent. The coming days will be critical in assessing whether institutional demand can finally outweigh the selling pressure and reverse the bearish trend.
