XRP Faces Technical Resistance as Year-End De-Risking Weighs on Price Action

​​XRP has struggled to regain the critical $2.00 mark as it enters the holiday season under significant technical pressure. Trading between $1.88 and $1.91 as of December 24, 2025, the digital asset has seen a steep decline of nearly 50% from its 2025 high of $3.67 in July. The current consolidation phase comes despite a resolution in its SEC lawsuit earlier this year and the successful launch of spot XRP ETFs in November.

Market analysts note that XRP's failure to maintain the psychologically important $2.00 level has shifted the market's bias toward the downside. "Year-end profit-taking and tax-loss harvesting have amplified the downward pressure," said one observer. While broader market sentiment remains "risk-off," XRP's price action signals a tug-of-war between steady institutional accumulation and long-term holders' distribution efforts.

Resistance Levels Loom Over XRP's Short-Term Outlook

The technical landscape for XRP remains dominated by multiple resistance levels, which are preventing bulls from reversing the ongoing downtrend. The immediate hurdle lies between $1.93 and $1.95, a range that has repeatedly rejected attempts at recovery throughout December. Analysts warn that if XRP fails to close above the $1.90 pivot on a daily basis, the asset faces the risk of further retracement toward the key $1.80 support level. "A breach below this level could expose XRP to deeper declines," one analyst cautioned, citing potential targets near the April lows of $1.62 or the October flash-crash support at $1.25.

Institutional Demand Supports XRP Amid Waning Retail Interest

Despite sluggish price action, XRP's institutional demand appears to be holding up. Investment products tied to XRP have recorded consistent positive net inflows, including a notable $80 million influx in a single week as of late December. These inflows suggest that institutional interest in the asset remains strong, even as retail engagement dwindles. On-chain data, however, paints a more cautious picture, showing a sharp drop in daily active addresses on the XRP Ledger—from over 13,000 in November to just under 3,500 today.

Additionally, "whale" wallets have been trimming their holdings, pointing to a market that is increasingly dependent on passive ETF demand to offset the selling pressure in the spot market. For a meaningful rebound to occur, market participants are closely watching for stabilization in network activity and a break above the 20-day exponential moving average near $1.98.