XRP price is pulling back after a strong move higher, with price now testing whether buyers can defend the $2.00 area as large on-chain transfers increase.
Summary
- XRP slipped to $2.14 after a strong rally, with trading and derivatives volumes declining as traders reduce exposure.
- Whale transactions on the XRP Ledger surged to a three-month high, while exchange balances fell.
- XRP remains constructive above $1.96 support, but faces resistance near $2.26, with further upside dependent on renewed volume.
At press time, XRP was trading at $2.14, down 5% over the past 24 hours. Even with the drop, the token remains up 17% over the last seven days and 3.6% over the past month. Price has traded between $1.83 and $2.39 in the past week.
XRP (XRP) is still about 41% below its July peak of $3.65, showing that the broader recovery is incomplete. Trading activity has slowed as prices cooled. XRP’s 24-hour volume fell 34% to $4.29 billion, pointing to lighter participation after the rally.
Derivatives data from CoinGlass shows the same trend. Volume dropped 39% to $7.38 billion, while open interest declined 6% to $4.15 billion. When both metrics fall together, it often means traders are closing positions rather than opening new ones, a common pattern after sharp price moves.
Whale flows and supply dynamics add complexity
While short-term traders have stepped back, larger holders are becoming more active. Data shared by Santiment on Dec. 9 showed that whale transactions on the XRP Ledger jumped to 2,802 in a single day, the highest level in three months.
These are transfers worth $100,000 or more. In the past, similar spikes have often come before larger price swings, as whales either take profits or reposition. Around 83% of XRP holders are currently in profit, which raises the risk of short-term selling.
Recent token movements have also drawn attention. On Jan. 5, Ripple transferred 300 million XRP, worth about $652 million, from a company-linked wallet to an unknown address. The move fits Ripple’s regular escrow process, where 1 billion XRP is unlocked each month and most of it is re-locked.
Exchange data adds another layer. The amount of XRP held on exchanges has fallen by more than 50% in recent months to around 1.6 billion tokens. Lower exchange balances can sharpen price movements when demand rises and often reduce immediate selling pressure.
XRP price technical analysis
From a chart perspective, XRP is consolidating after breaking higher. The price recently moved above the $2.10–$2.15 zone, which had capped gains through late December.
That area is now acting as near-term support. XRP has also reclaimed its short-term moving average near $1.96, a level often watched for trend direction.
After weeks of sideways movement, the price has pushed above the middle Bollinger Band at $2.05, indicating improving momentum. XRP is currently testing the upper band at $2.26. That level could restrict future gains if volatility doesn’t pick up.
The relative strength index has climbed to 59, showing stronger momentum, but rallies in weaker trends often stall in this range. A higher low has formed near $1.88–$1.90, which supports the short-term structure.
As long as XRP holds above $1.96 on a daily close, the setup remains constructive. A clean move above $2.26 would put $2.40 to $2.50 back into focus. If support fails, attention would shift back toward $1.85, with deeper downside near $1.66.
