XRP has fallen by 11.4% in December, ending a trend of two consecutive years of annual gains and is expected to finish this year with negative results. This decline indicates that market momentum is weakening, and according to on-chain data, selling pressure is increasing as Binance deposits rise.
Despite this bearish situation, some analysts maintain a cautious optimism. They argue that XRP is preparing for a recovery similar to the 2017 cycle.
Increase in inflow to Binance… Expanding selling pressure on XRP
Like the entire cryptocurrency market, XRP is showing a continuous monthly decline this quarter. According to data from the cryptocurrency price information site CoinGecko, this coin fell by 11.9% in October and recorded a larger drop of 13.8% in November.
The bearish trend continues into December, with XRP down 11.4% this month. Amid this decline, analyst DarkPost has emphasized that selling pressure is increasing.
On-chain data indicates that from December 15, the volume of XRP flowing into Binance surged, with daily deposits increasing from 35 million XRP to a peak of 116 million XRP by December 19. This surge occurred after a relatively stable and moderate level of inflow to exchanges.
“This influx is generally interpreted as a potential intention to sell, especially when it increases significantly in a short period.” – DarkPost, Analyst
According to analysts, this change indicates a shift in investor behavior.
“Since October, many market participants have followed a holding strategy, but the trend over the past two weeks has shifted towards profit-taking from long-held positions and loss-selling from new entrants.” – DarkPost, Analyst
Recent analysis from BeInCrypto shows that wallets holding XRP for 2-3 years have decreased from 14.26% of the total supply to 5.66% as of December 26.
DarkPost finally stated that if the exchange deposits remain at high levels or increase further, XRP may struggle to enter a true accumulation phase. This analyst warned that ongoing selling pressure could prolong the current correction and potentially lower prices further.
Will XRP rebound like in 2017?
Despite this, many market participants still maintain an optimistic outlook on the coin. One analyst mentioned the possibility of the Adam and Eve pattern forming on the XRP 1-hour chart.
The Adam and Eve pattern is a technical reversal pattern that indicates a potential transition from a bearish trend to a bullish trend. The first bottom, ‘Adam,’ appears sharply in a V shape, reflecting panic selling.
The second bottom, ‘Eve,’ has a more gradual curve, indicating that prices are stabilizing and selling pressure is easing. If the neckline of the pattern is broken, investors will interpret this as a bullish signal, leading to a resurgence of buying pressure.
Some analysts say that the current market structure of XRP is very similar to the price movements of 2017.
“The expected increase in XRP is over $15. It has completely achieved the target price measured after breaking through in 2017, and a very similar upward breakout has recently occurred, suggesting that the same trend will continue. This indicates an additional increase of about 8 times, over 690%.” – Javon Marks
However, such comparisons rely too heavily on the symmetry of past patterns, so we cannot guarantee that they will necessarily repeat when circumstances are different.
As 2025 approaches, XRP stands at a crucial turning point. The increase in exchange deposits reveals selling pressure, while technical indicators and past patterns suggest the possibility of a rebound. It is expected that in the coming weeks, it will become clearer which side—bearish signals or weakening on-chain indicators—will prevail.
