Why is XRP down today? XRP price sees biggest drop in nearly a month, may fall another 20%

After several consecutive weeks of narrow consolidation above $2, the price of XRP has finally broken out. On December 1 (Monday), XRP experienced a sharp single-day drop of about 7%, falling from around $2.16 to a low just above $2.00, closing at approximately $2.03—the largest single-day decline in nearly a month.

This market move caught many traders off guard, as XRP had previously made multiple failed attempts to break through a key resistance zone. On Gate, where XRP/USDT is one of the most active major trading pairs, this sell-off drove the 24-hour low close to $2.00, with spot trading volume surging, highlighting the strength of this pullback.

This article will deeply analyze the reasons behind XRP’s decline today, why some traders believe there is still 20% downside potential, and how Gate users can respond to current market volatility.

##XRP Price Performance Today—Sharp Reversal After Failed Breakout Despite a small intraday rebound, with XRP briefly climbing back to the $2.15–$2.20 range, the market is still digesting the impact of Monday’s sharp drop. The daily candle on December 1 saw a low of $2.01, a single-day decline of nearly 6%, marking the largest daily drop in four weeks.

This move was not entirely without warning. In the days leading up to the fall, XRP repeatedly tested the $2.19–$2.29 resistance zone, which had been a key support area earlier in the year. Each time the price hit this range, buyers failed to hold their ground, with daily candles frequently showing long upper wicks—classic signs of sellers quietly absorbing upward momentum.

Once the balance tipped, Gate’s order book saw a flood of market sell orders, quickly dragging XRP down to the $2.00 region and triggering stop-losses, prompting short-term traders to exit en masse.

##XRP Price Technical Analysis—Supply Pin Bar and Downside Targets From a technical perspective, XRP’s current weakness stems from a classic reversal pattern—a “supply pin bar” on the daily chart.

Key features of this candlestick include:

• A long lower shadow, reflecting heavy intraday selling pressure;
• A small real body, indicating buyer hesitation and waning momentum at resistance.

This pattern formed right at the $2.19–$2.29 resistance, signaling that supply overhead has subdued buying demand. The subsequent break below short-term support confirms that sellers have taken control of XRP’s price action.

Key technical levels to watch now:

• The first major support zone is near $1.90, where XRP previously found brief stabilization;
• Deeper technical targets lie in the $1.60–$1.25 range, based on recent swing highs/lows and historical consolidation.

If the price drops from around $2.05 to near $1.64, that’s close to a 20% slide, landing directly within the $1.60–$1.90 support cluster. The view that “XRP could drop another 20%” is thus rooted in technical patterns, not just market sentiment.

In addition, XRP has now broken below key moving averages, with the 50-day average having crossed below the 200-day—a “death cross.” Most traders see this as a medium-term bearish signal, further increasing downside risk.

##XRP Price and Overall Crypto Market Pullback—Macro Headwinds Cannot Be Ignored XRP’s decline is also part of a broader rise in risk aversion across the crypto market. Early this week, a clear market pullback occurred, with both major and altcoins seeing sharp declines in a short period.

In previous weeks, risk assets benefited from strengthening expectations of central bank rate cuts. When sentiment reversed, high-leverage long positions in major coins were forced to unwind. For XRP, the futures market saw a wave of liquidations after price broke below key intraday support, accelerating selling pressure.

This macro environment is especially important for Gate traders, as XRP’s price is not only impacted by Ripple news or on-chain data but is also highly sensitive to:

• Global risk appetite,
• US dollar liquidity and interest rate expectations,
• Broad market positioning around Bitcoin and other major assets.

When the market broadly de-risks, even fundamentally or technically strong tokens can see sharp, short-term corrections.

##XRP Price Drivers—ETF Flows, Whale Behavior, and Market Structure Beyond short-term volatility, XRP’s price is also influenced by a number of structural factors.

1. ETF and Institutional Inflows into XRP New investment products tracking XRP are bringing more compliant capital into the market. These flows support XRP prices during rallies, but may weaken or reverse as risk appetite drops. When ETF buying slows and futures markets deleverage, the net short-term effect can be negative.

2. Whale Behavior Impacting XRP Price Volatility Historically, sharp drops in XRP price often coincide with large whale wallets transferring funds to exchanges, suggesting profit-taking or portfolio rebalancing by large holders. When big addresses release large amounts of XRP to the market just as retail sentiment turns nervous, supply surges and pullback pressure intensifies.

3. Exchange Reserves and Order Book Liquidity Affecting XRP Price Over the past few months, declining XRP balances on exchanges were seen as evidence of strong accumulation and reduced sell-side liquidity, supporting prices. But just before the recent $2.19–$2.29 resistance, exchange balances started climbing again, with sellers well-supplied just as bulls struggled to break key resistance.

On Gate, these dynamics are reflected directly in order book depth, spreads, and changes in open interest and funding rates for XRP/USDT perpetual swaps. When leverage is high and sentiment is one-sided, XRP becomes more prone to sharp, rapid swings.

##Can XRP Drop Another 20%? Bearish and Bullish Scenario Analysis So, is a further 20% drop in XRP realistic? From a risk management perspective, it is certainly possible, but not inevitable—the outcome depends on which scenario plays out.

Bearish Scenario for XRP In a bearish setup:

• The macro environment remains fragile, with continued selling in risk assets;
• Bitcoin fails to reclaim and hold key psychological levels, dragging majors lower;
• Fund flows into XRP-related products slow or turn negative, with whales continuing to transfer coins to exchanges.

In this combination, price drops from the current $2.00–$2.10 range to the $1.60–$1.70 region (about 20% lower), in line with the existing downtrend and testing deeper support.

##A More Positive Scenario for XRP Of course, there is also a more optimistic path:

• Macro data improves, markets regain confidence in rate cuts and liquidity, with capital flowing back into high-beta assets like XRP;
• Long-term holders and ETF buyers resume net accumulation, absorbing selling at lower levels;
• XRP holds the $1.90–$2.00 support and gradually recovers to the $2.20–$2.30 resistance area.

In this case, the recent drop looks more like a deep correction within a broader uptrend, not the start of a new bear market.

At present, both scenarios are possible. For Gate users, the key is to treat the “another 20% drop” as a risk to plan for, not an inevitable outcome.

##How Gate Traders Can Respond to XRP Price Volatility With XRP stuck between a failed breakout and the risk of a deep correction, structured trading strategies are far more important than trying to catch the bottom. For Gate spot traders:

• Consider building positions in tranches, especially near historical strong support zones like $1.90–$2.00, instead of investing all at once;
• Set clear stop-loss levels: if XRP breaks key pre-set levels, reduce positions or stop out decisively.

For Gate futures traders:

• Use XRP/USDT perpetual contracts mainly to hedge spot positions or express cautious tactical views, avoiding frequent chasing of intraday moves;
• Maintain moderate leverage. With daily XRP swings of 5–10%, high leverage can quickly result in liquidations;
• Set stop-loss and take-profit levels before entry, and execute them strictly. Whether spot or futures, keep a close eye on Gate’s XRP market funding rates, open interest, and liquidity metrics, as these often provide early warning of major price moves.

##XRP Price—Key Takeaways After the Largest Monthly Drop In summary:

• XRP’s drop today was triggered by multiple bearish factors: failure to break $2.19–$2.29, daily reversal signals, broad crypto market risk-off, and forced liquidations of high-leverage longs;
• Technically, if selling persists and macro conditions don’t improve, XRP could drop another 20%, testing the $1.60–$1.70 area;
• At the same time, key support at $1.90–$2.00 and continued institutional interest leave room for stabilization and rebound.

For Gate users, the recommendation is to respond rationally and avoid panic. XRP is currently in a technically fragile zone—prioritize risk, plan for multiple outcomes, and use Gate’s spot and futures tools with discipline.

This article is for information sharing and educational reference only and does not constitute any financial or investment advice. Anyone considering investing in or trading XRP should conduct independent research, fully understand the associated volatility risks, and manage position sizes prudently.