XRP price approaches the $2 key support level, descending triangle pattern indicates increased downside risk

XRP price trend is entering a critical stage. As the descending triangle pattern tightens further, market concerns over a potential decline are intensifying. At press time, XRP trading price is $2.03, up slightly 1% in the past 24 hours, but the overall trend remains weak. Over the past week, XRP has oscillated between $1.99 and $2.17, positioned at the tip of the descending triangle, with noticeably narrowing space, indicating an imminent breakout.

From a longer-term perspective, XRP has fallen 14% over the past month, retreating approximately 45% from the July high of $3.65. Trading activity has decreased accordingly, with spot daily trading volume dropping to $3.08 billion, a 26% daily decline, and the derivatives market showing similar weakening trends. CoinGlass data shows futures trading volume down 25%, and open interest slightly decreased to $3.69 billion. When both spot and derivatives volumes decline simultaneously, it often indicates market participants are risk-averse, waiting for clear directional signals.

Recent fundamentals also exert pressure on price performance. ETF capital flows have slowed significantly, and market enthusiasm for Ripple-related products has cooled, with funding rates turning negative, reflecting increased bearish sentiment. Santiment data indicates rising market panic and that long positions are at abnormally low levels.

However, the market is not entirely devoid of new positive developments. On December 11, Hex Trust launched Wrapper XRP (wXRP), supported 1:1, enabling XRP to circulate across major chains like Solana, Ethereum, and Optimism via LayerZero. On launch day, over $100 million worth of tokens were locked, and DeFi applications related to Ripple’s stablecoin RLUSD were initiated. This cross-chain progress injects new growth catalysts into the XRP ecosystem, especially given strong demand already emerging on the Solana chain.

From a technical perspective, the daily chart’s descending triangle structure remains dominant, a typical continuation pattern in a downtrend. Lower highs are continuously forming, showing sellers have the upper hand on each rebound, while the $2 support has been tested multiple times, with buying power weakening. RSI remains around 42, indicating weak momentum; multiple moving averages are above and sloping downward, and MACD remains below zero, all signaling insufficient rebound strength.

If XRP breaks below $2, it will confirm the bearish continuation of the descending triangle and could trigger further declines. Conversely, a breakout above the trendline may lead to a technical rebound, but given the current weak structure, the probability of a bounce remains limited. Investors should closely monitor the $2 region for the final performance to determine XRP’s short-term trend direction.