XRP sent shockwaves through the market on Monday after plunging over 5% to $2.0340, marking its lowest level since November 23. The drop has now pushed the token roughly 45% below its yearly high, delivering its steepest single-day decline in a month. The fall came during a turbulent start to December, with more than $200 billion wiped from the global crypto market, triggering widespread panic among traders.
Market sentiment has turned sharply negative, with the Crypto Fear & Greed Index sinking to 20, signalling deep fear. As major assets like Bitcoin and Ethereum tumbled, XRP followed the downtrend with even stronger momentum. Thinner liquidity, fast-moving sell orders and rising volatility all played their part in dragging the token lower during an already fragile market environment.
XRP’s decline is being driven by a mix of technical weakness and intense market fear. A major factor behind the drop was the sudden spike in bullish liquidations. Data from CoinGlass revealed that over $16 million worth of long positions were wiped out in 24 hours — a massive jump from the previous day’s $2.27 million. These forced liquidations accelerated selling pressure and amplified the slide.
Technical indicators also lean heavily bearish. XRP remains trapped inside a descending channel, repeatedly failing to break above resistance. The token continues to trade below its 50-day and 200-day EMAs, and the death cross formed on November 6 still weighs on its price structure. Sellers have consistently stepped in at every attempted rebound, leaving the chart dominated by lower highs, lower lows and clear bearish control.
Even in the middle of the downturn, XRP shows several signs of long-term strength. Institutional demand remains strong, with U.S. ETFs recording more than $666 million in total inflows. These funds now hold over $687 million worth of XRP, capturing more than 0.5% of the asset’s total market cap — a strong indicator that major investors remain committed.
The XRP Ledger (XRPL) is also seeing a burst of activity. Stablecoin supply on XRPL has surged by more than 90% in the last 30 days, driven largely by growing adoption of Ripple’s RLUSD stablecoin. Combined with assets on Ethereum, RLUSD now manages over $1.3 billion, reflecting expanding network utility. Confidence in Ripple Labs was further reinforced after the company secured $500 million in fresh investment at a massive $40 billion valuation from Citadel and Fortress Investment.
With rising on-chain usage, expanding stablecoin activity and strong institutional backing, XRP has several fundamental supports that could help stabilize and eventually lift the price once market sentiment improves. When fear cools and liquidity returns, the token may find room to break out of its current bearish pattern.
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