XRP Price: What’s Ahead for XRP in December?

TLDR

• XRP rebounded 6% to $2.17 after defending the $2 support level, with traders watching the $2.28-$2.30 resistance zone as a critical breakout point.
• A daily close above $2.30 could confirm a trend reversal and open the path toward $2.58, marking the first bullish structure shift since July.
• XRP ETFs have recorded 11 consecutive days of net inflows, with assets under management reaching $844 million and a single-day inflow of $89 million on December 1.
• Futures funding rates remain negative and open interest has dropped from $8.6 billion to $3.8 billion, suggesting short positions dominate but could trigger a squeeze if the trend reverses.
• Technical indicators show a potential bullish divergence on the RSI, while analysts warn that failure to hold above $2 could lead to a drop toward $1.90.

XRP bounced back this week after testing support near $2. The price climbed almost 6% on Tuesday to reach $2.17.

This recovery came after a brief dip on Monday that swept liquidity below the psychological $2 level. The move marks an important test for the cryptocurrency as it attempts to break free from a downtrend that started in July.

The key resistance zone sits between $2.28 and $2.30. A daily close above this level would signal a break in the current price structure.

If XRP clears this hurdle, the next target becomes $2.58. Between $2.34 and $2.42, traders expect some profit-taking to occur.

The bounce to $2.17 happened after XRP touched a price gap just below $2. This area formed during a rebound from $1.80 on November 21.

Buyers have shown they are willing to step in at these lower prices. The compression below $2.30 resembles a coiling pattern under a major decision point.

ETF Inflows Provide Support

XRP exchange-traded funds have seen positive net inflows for 11 straight days. Assets under management in these funds have jumped to $844 million since their launch.

On December 1, the ETFs attracted $89 million even as the broader crypto market declined. Multiple providers including Bitwise, Canary Capital, and Grayscale have launched XRP ETF products.

Trading volumes increased 20% in the past 24 hours to nearly $5 billion. This volume represents 4% of XRP’s circulating market cap.

The sustained ETF inflows could create a floor under the price. If positive flows continue, this may force short sellers to exit their positions.

Technical Indicators Show Mixed Signals

The Relative Strength Index shows a potential bullish divergence. Momentum has not made a lower low even though the price continued dropping.

However, funding rates in the futures market remain negative. This indicates short positions outnumber long positions.

Open interest has fallen sharply from $8.6 billion to $3.8 billion in the fourth quarter. The decline in open interest means fewer traders hold futures positions.

One analyst noted that XRP’s chart shows a three-drive exhaustion pattern over six weeks. A higher low has formed, which could signal a trend change.

The monthly volume-weighted average price sits at $2.22. Reclaiming this level would support a move toward $2.50.

Critical Levels Ahead

The price action over the next few days will determine XRP’s direction. If XRP fails to break above $2.30, the next support zone lies between $2 and $1.90.

A drop below $2 would extend the downtrend that has been in place since summer. Traders are watching orderbooks closely for signs of which way the price will break.

The 200-day exponential moving average provides another reference point. Breaking above this indicator would add confirmation to a bullish trend reversal.

XRP is approaching the upper boundary of a descending price channel that formed in early October. A breakout from this pattern could target the $3.10 level, representing a 48% gain from current prices.

Funding rates below -0.01 would increase the likelihood of a retest of the $1.90 to $2 zone. However, deeply negative funding can sometimes precede sharp reversals when short positions get squeezed.

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