XRP Breaks Key Support, Analysts Eye Drop Toward $2.05 as Momentum Turns Bearish

Ripple's XRP fell sharply on Thursday, breaking below a crucial support level and raising the risk of a deeper pullback toward $2.05, as bearish technical momentum outweighed strong institutional inflows into spot ETFs.

The token broke through the $2.07 floor amid a surge in selling volume, signaling a shift in near-term control from buyers to sellers. This comes despite robust demand from long-term investors, with XRP spot ETFs attracting nearly $850 million since their mid-November launch—one of the strongest starts for any altcoin ETF.

Technical Breakdown
XRP spent much of the session attempting to hold above $2.07 but consistently formed lower highs, indicating fading buying interest. Selling pressure intensified in the final hour of trading, with a sharp volume spike pushing the price toward $2.00 and confirming the breakdown.

Momentum indicators have turned bearish, with the Relative Strength Index (RSI) declining and the Moving Average Convergence Divergence (MACD) dipping further into negative territory. The $2.07 level has now flipped from support to immediate resistance.

Price Action
XRP dropped 5.7% over 24 hours, sliding from $2.20 to as low as $2.10. Attempts to reclaim $2.11 failed amid weakening volume, and a late-session surge in activity confirmed the bearish shift. The token is now consolidating between $2.10 and $2.12 but remains below all key intraday resistance levels.

Market Context
While ETF inflows reflect growing institutional interest, broader market liquidity remains thin. Open interest across major exchanges has declined, pointing to reduced speculative activity and a risk-off environment. Bitcoin's ongoing volatility below key weekly levels has also kept altcoins like XPR under pressure.

Outlook
Analysts warn that the loss of $2.07 support opens a path toward $2.05. A break below that could see XRP test the $1.90–$1.97 demand zone. For the trend to reverse, the token would need to reclaim $2.07–$2.11 with strong volume and conviction. Until then, the structure favors further downside, potentially extending the bearish cycle into December.