Social sentiment for XRP has dropped to extreme fear levels, similar to October lows, which have historically led to short-term rebounds. Despite a weekly decline of 7.4%, institutional demand through U.S. spot XRP ETFs remains robust with $906 million in net inflows since launch. Technical indicators show structural weakness but flash a potential reversal via the TD Sequential on the weekly chart.
XRP has been under pressure in early December, extending a multi-session downtrend with a -7.4% weekly performance. The cryptocurrency traded in a narrow $0.0563 range, or 2.8%, between $2.02 and $2.07, closing near $2.032. An overnight attempt to break higher saw the price push through $2.05 resistance on a 68% above-average volume surge of 44.99 million, reaching $2.07. However, the rally lacked sustained momentum, fully retracing as volume diminished, with sellers regaining control.
A descending channel has formed on the 60-minute chart, marked by successive lower highs and tightening price compression, indicating an orderly decline rather than panic. Bounces have faced distribution near $2.04–$2.05, now acting as immediate resistance. Momentum oscillators trend downward across intraday timeframes, underscoring short-term fragility. The critical pivot sits at $2.030; holding this level is essential to prevent deeper tests of $2.020–$2.025, with $2.00 as psychological support.
Despite these challenges, supportive fundamentals persist. U.S. spot XRP ETFs have seen no outflow days and accumulated $906 million in net inflows since launch, reflecting strong institutional demand. On-chain data reveals mixed signals: holders of 6–12 months reduced exposure from 26.18% to 21.65%, while long-term accumulation continues quietly.
Social sentiment, per Santiment, has collapsed to extreme fear, matching October lows and showing the highest bearish commentary in over five weeks. Historically, such extremes have preceded rebounds, like the one on November 21. The weekly TD Sequential indicator now flashes an early reversal signal, pairing short-term weakness with potential long-term stabilization. Traders eye a reclaim of $2.035 for intraday momentum or a break above $2.05 to invalidate the channel, though the prevailing trend stays downward without a technical trigger.