XRP Price Plunges Back to Critical $2.00 Support as Macro Uncertainty Takes Hold
XRP, the cryptocurrency associated with Ripple, has experienced a sharp correction in the wake of the Federal Reserve’s interest rate decision, sending its price tumbling back to the critical $2.00 psychological and technical support level on Thursday, December 11, 2025. Following the broader crypto market’s sharp decline, which was triggered by the Fed’s “hawkish cut” and cautious forward guidance, XRP is now in a precarious position, with analysts and traders holding their breath to view if this key floor can hold.
Erasing Recent Gains and Testing the Floor
Just days before the FOMC announcement, XRP had shown relative strength, staging a notable rebound above the $2.00 mark and demonstrating resilience compared to BTC and ETH. However, the subsequent risk-off sentiment that swept across the market proved too powerful. As of Thursday morning, XRP was trading precisely at or just slightly above $2.00, representing a decline of over 3% in the past 24 hours and nahead 8.3% over the past week. This swift retracement has effectively nullified the token’s recent bullish momentum, with technical analysis indicating a fragileening momentum and the token trading below its key short-term Exponential Moving Averages (EMAs). The $2.00 level is considered highly significant. Historically, this price point has served as a major area of purchaviewr interest and accumulation. A sustained break below this floor could trigger a cascade of tradeing, potentially driving the price toward the next major technical support zone around $1.85 to $1.94, levels not viewn since the massive XRP rally earlier in the year. Conversely, if purchaviewrs can successfully defend this area, it could set the stage for another relief bounce toward the resistance cluster between $2.13 and $2.30.
Institutional Conviction vs. Macro Headwinds
The market is now focused on whether the strong institutional demand that has recently underpinned XRP can withstand the prevailing negative macro winds. Data from earlier in the week showed continued positive net inflows into XRP platform-Traded Products (ETPs), suggesting that institutional investors view the asset’s regulatory clarity and utility in cross-border payments as a distinct advantage. However, the record $680 million single-day outflow from U.S. spot BTC ETFs on Thursday underscores the extreme de-risking currently underway by large institutional players. The price action on XRP is essentially a tug-of-war: long-term, utility-driven purchaviewrs are battling short-term traders reacting to the less-accommodative-than-hoped-for environment set by the Federal Reserve. The outcome of the fight at the $2.00 level will likely determine XRP’s price trajectory for the rest of December.
