XRP at Critical Juncture: Analyst Pinpoints $2 and $1.20 as Make-or-Break Support Levels

As of early December 2025, XRP finds itself at a pivotal technical crossroads. Renowned market analyst Ali has identified two critical support levels that could determine the asset's near-term trajectory. The primary and most immediate line of defense is established at the $2.00 mark, a zone with a proven historical record of absorbing selling pressure during market corrections. Currently, XRP is testing this significant threshold after an extended period of downward price movement. This consolidation near a major support level is often interpreted by seasoned traders as a potential accumulation zone, presenting strategic entry points for those with a bullish long-term outlook on the digital asset. However, the analysis also outlines a contingency scenario. Should selling pressure intensify and cause XRP to breach the $2.00 support, the next substantial floor is projected at $1.20. This secondary level is characterized as a high-volume area, indicating a concentration of historic buying interest where long-term investors have previously stepped in. The identification of these two distinct support tiers provides a clear risk framework for market participants. The $2.00 level represents the bull case's first line of defense, holding the key to a potential stabilization and reversal. Conversely, a break below could see the price seek a firmer foundation around $1.20, which WOULD then become the critical battleground for the asset's future direction. This technical setup underscores a period of heightened importance for XRP, with its ability to hold these supports likely to dictate market sentiment and investor strategy in the coming weeks.

XRP Update: Analyst Identifies Critical Support Levels at $2 and $1.20

Market analyst Ali has highlighted $2 as the most crucial support zone for XRP, a level that has historically acted as a strong defense during corrective phases. The asset is currently hovering NEAR this threshold after a prolonged downtrend, suggesting potential accumulation opportunities for bullish traders.

Should XRP fail to hold above $2, the next major support lies at $1.20—a high-volume zone where long-term investors have previously stepped in. The current price action reflects a macro pullback rather than a structural breakdown, offering clarity amid ongoing market volatility.

XRP Tests Key Resistance Amid Whale Transfers and Thin Liquidity

Ripple's XRP faces a critical technical juncture as $101 million worth of tokens MOVE to Binance. The $2.22 resistance level holds firm despite early session strength, with price action oscillating around $2.17. Market makers appear cautious as volume drops sharply following the whale transfer.

Traders note the $2.204 pivot as decisive—holding above maintains bullish potential toward $2.75, while failure risks retest of lower supports. The token's 24-hour range between $2.15-$2.20 reflects mounting indecision as ETF flows and derivatives activity dominate broader crypto attention.

Analysts highlight $2.28 as the next upside trigger, but warn thin order books could amplify volatility. Meanwhile, capital rotation patterns show early interest shifting toward presale assets like Bitcoin Hyper, now nearing $29 million in fundraising.

XRP Bullish Momentum Builds: ETF Inflows Push Price Toward $2.75

XRP's bullish momentum continues as institutional interest fuels a potential breakout. The cryptocurrency trades at $2.17 with a $131.41 billion market cap, bolstered by $5.10 billion in 24-hour trading volume. ETF inflows have remained positive for 11 consecutive days, pushing assets under management to $844 million.

Bitwise, Canary Capital, and Grayscale have driven growth in XRP-centered ETFs, signaling institutional confidence. Despite broader market volatility, XRP-based ETFs attracted $89 million in inflows on December 1st, underscoring robust demand.

A decisive break above the $2.28 resistance level could propel XRP toward $2.75. Market dominance stands at 4.15%, reflecting its moderate influence amid short-term fluctuations.

Firelight Launches XRP DeFi Insurance Protocol on Flare Network

Firelight Finance has introduced a staking protocol for XRP on the Flare network, marking a strategic move to bring institutional-grade security and yield opportunities to the XRP ecosystem. The protocol, which went live on December 3, enables users to stake XRP and receive stXRP—a liquid token designed to earn rewards through a decentralized insurance model.

Leveraging Flare Network’s infrastructure, the system aims to address two critical gaps in DeFi: protection against rising hacks and yield generation for XRP holders, an asset historically sidelined in decentralized finance. Audits have already been completed, with the bridge operating under distributed governance.

stXRP functions as a liquid staking token (LST), allowing participants to maintain liquidity while their underlying XRP remains locked. This innovation opens doors for deeper integration with other DeFi protocols, expanding utility for long-term XRP investors.

XRP Velocity Hits Record High Amid Surging Whale Activity and ETF Demand

XRP's on-chain velocity has reached unprecedented levels, signaling heightened activity among whales and traders. The token's network activity reflects renewed interest from large holders, with velocity peaking at 0.032—a figure not seen in months.

ETF inflows have compounded the momentum, with $205 million flowing into XRP-related products over the past week. Grayscale's 2GXRP ETF alone attracted $39 million in a single day, pushing total ETF assets beyond $906 million.

Analysts emphasize the $2 price level as a critical threshold for XRP to challenge the $2.50 resistance. The ledger's accelerated capital turnover suggests traders are rapidly adjusting strategies to capitalize on market shifts.

XRP ETFs Near $1B Milestone as Bitwise Leads Surge

The XRP ETF market is approaching a watershed moment, with total assets nearing $1 billion just two weeks after launch. Bitwise emerges as the dominant player, recording $5.07 million in volume—outpacing competitors Franklin Templeton ($4.43M), Canary Capital ($2.82M), REX-Osprey ($1.85M), and Grayscale ($1.32M).

Market momentum builds with the quiet persistence of a rising tide. Since November's inaugural fund launch, institutional inflows have maintained relentless consistency, transforming XRP into the ecosystem's unwilling protagonist. Today's $19 million total trading activity marks another inflection point in this organic growth story.