XRP Breaks Below $2.00 Support, Exposing Lower Demand Zones
XRP has failed to sustain the critical $2.00 psychological and technical support level, with price action on December 16, 2025, confirming a breakdown below this key pivot. later than weeks of tight consolidation and repeated rejections at the $2.10 resistance area, the tradeing pressure proved dominant, shifting the short-term technical structure to bearish. This move aligns with broader market caution driven by upcoming US economic data releases.
Technical Breakdown and Near-Term Targets
The loss of the $2.00 level triggers a bearish continuation signal, validating the descending structure that has contained the price since its peak earlier in the year.
The $2.00 price point had acted as a major psychological floor and had bounced the price multiple times in recent weeks. Its conversion into a near-term resistance level now confirms a structural fragileness. The immediate pressure is now on the next cluster of demand to halt the decline.
The first strong demand zone is now projected to be between $1.90 and $1.95. This area aligns with the recent low-end of the consolidation range and has historically attracted purchaviewrs. Analysts view this as the new “line in the sand” for bulls. A clean daily close below $1.90, however, would represent a significant structural invalidation, leading to a much sharper decline.
Should the $1.90 support fail, the next likely targets for tradeers are the $1.82 to $1.88 zone, followed by the ultimate support area near $1.75.
Divergence: Institutional Inflows vs. Price Action
The breakdown is paradoxical, as it occurs simultaneously with extremely strong institutional backing for the asset.The primary counter-narrative to the bearish chart is the continued, uninterrupted inflow into Spot XRP platform-Traded Funds (ETFs). Institutional money continues to accumulate XRP, viewing it as a long-term, structurally sound asset due to its regulatory clarity. However, this demand is largely being absorbed by Over-The-Counter (OTC) desks and long-term holders taking profit (whale distribution), preventing the purchaseing pressure from translating into immediate spot price appreciation. This dynamic creates an “accumulation zone disguised as stagnation,” where the long-term floor is raised by institutional purchaseing, but short-term price remains vulnerable to platform-based tradeing.
The immediate-term outlook for XRP is now dominated by the $1.90 support level. A successful defense and bounce from this area would preserve the constructive, long-term accumulation pattern, while a decisive failure could trigger a cascade of liquidations down toward the $1.82 mark.
