Karla Barker 
Technical Structure Shows Continued Pressure
XRP’s technical outlook appears to be deteriorating further after extended capital outflows from the cryptocurrency. The asset is currently trading just above the $2 mark, but this critical support level is showing signs of sustained pressure. According to analysis shared by Ali Martinez on December 13, XRP has shifted from strong upside momentum earlier in the year into a clear downtrend pattern characterized by lower highs and lower lows on higher time frames.
I think what’s particularly concerning is how each subsequent rebound has been weaker than the last. The token topped above $3.40 earlier this year, but momentum faded as it broke below key supports at $2.60 and $2.25. This pattern suggests declining bullish conviction and a firmly bearish market structure that’s becoming harder to ignore.
The $2 Support Level Holds Psychological Weight
Right now, XRP is consolidating just above $2, with tightening price action and lower volatility. While this might signal indecision in some contexts, following an extended decline it more often points to downside continuation rather than recovery. The $2 level isn’t just a technical support—it’s a psychological barrier that has repeatedly acted as a structural floor in recent months.
A decisive break below $2 would confirm the loss of long-term support and open the way for a drop toward $1.20. That level aligns with past consolidation zones and historical reaction points. Once $2 fails, selling pressure could accelerate as stop-loss orders are triggered, creating something of a cascade effect.
Broader Market Context and Technical Indicators
XRP’s recent struggles have been compounded by broader cryptocurrency market sentiment. The asset briefly dipped below $2 alongside reported outflows of about $6 billion from the crypto space. Still, there are some hints that a rebound might be possible. ETF inflows remain relatively strong, and investors appear to be moving tokens off exchanges—a signal that can sometimes precede price stabilization or recovery.
At press time, XRP was trading at $2.04, up about 0.5% over the past 24 hours. The weekly chart shows similar modest gains. But the technical positioning tells a more concerning story: XRP remains below both its 50-day simple moving average of $2.27 and its 200-day SMA of $2.60.
This setup signals a persistent downtrend across both short- and long-term horizons. The wider gap to the 200-day average points to deeper bearish momentum that hasn’t been fully resolved. The 14-day Relative Strength Index at 41.51 sits in neutral territory but leans toward mild oversold conditions, suggesting selling pressure might be easing—though not yet at levels that typically trigger a strong rebound.
Perhaps what we’re seeing is a market that’s trying to find its footing after significant outflows. The tightening price action around $2 could indicate either accumulation or distribution, but given the broader context, I’m leaning toward the latter interpretation. The path to $1.20 seems more plausible than a quick recovery to previous highs, at least based on current technical structure and market sentiment.