XRP has shed a meaningful portion of its value in December as a sharp technical breakdown combined with worsening risk sentiment across the crypto market.
The move has pushed the token decisively below several key support levels, reinforcing a defensive short-term outlook.
Since the start of the month, XRP has fallen from roughly $2.20 to $1.88, marking a notable pullback after months of relative stability.
Over the same period, the token’s market capitalization dropped from approximately $132 billion to $113 billion, erasing nearly $19 billion in value in less than three weeks.
In the past 24 hours alone, XRP declined 1.19%, underperforming the broader crypto market, which slipped by about 0.8%. At the same time, Bitcoin dominance climbed to 59.2%, signaling a rotation toward perceived safety and away from higher-risk altcoins.
Technical Breakdown Accelerates Selling Pressure
From a technical standpoint, selling intensified after XRP lost the $1.95 support level, a zone that had held for more than a year.
The breakdown triggered momentum-based selling and pushed price toward deeper retracement levels.
XRP is now hovering near the 78.6% Fibonacci retracement around $1.91, while the relative strength index sits at 31.6, approaching oversold territory.
While this suggests selling pressure may be slowing, analysts caution that it does not yet signal a definitive bottom.
A sustained move below $1.85 could expose XRP to further downside, with the next potential support zone sitting in the $1.70–$1.75 range.
Sentiment Turns Defensive Despite Institutional Progress
The technical weakness has been reinforced by a broader deterioration in market sentiment.
The crypto fear and greed index has fallen to 21 out of 100, reflecting heightened caution as investors reduce exposure amid macro uncertainty and tightening liquidity conditions.
Notably, recent institutional developments and partnership announcements surrounding Ripple have failed to lift near-term sentiment.
Traders appear focused on broken chart structures rather than longer-term fundamentals, particularly as volatility rises and capital flows favor large-cap assets.
Key Levels to Watch Going Forward
XRP’s December decline highlights how quickly technical triggers can accelerate losses during periods of sector-wide deleveraging.
While longer-term fundamentals may still offer support, near-term price action remains fragile.
The $1.85–$1.88 range is now a critical area to watch into the weekly close. Holding this zone could help stabilize price action and slow the selloff.
A decisive breakdown, however, would likely confirm bearish continuation and increase the probability of a move toward the low-$1.70s.
For now, XRP remains in a defensive posture, with market structure and sentiment both pointing to caution rather than recovery.
