XRP's $2 Dream Shatters: Is December's $1.77 Ghost Haunting the Charts?

XRP's losing streak has dragged on for six days as institutional appetite evaporated, and a sector-wide sell-off dragged the price below the critical $2.00 support level. The token has officially lost the key psychological $2 mark after an 11% drop over the past week, extending the bleeding to a 20% decline from its monthly high.

This weakness stems from growing jitters in the crypto market, fueled by U.S. and EU trade concerns over Greenland and delays to the anticipated U.S. crypto market structure bill, the CLARITY Act. As a result, demand has waned. Data from SoSoValue shows the five U.S. XRP ETFs recorded a combined $53.3 million in net outflows, ending a seven-day inflow streak that had brought in nearly $70 million.

Investors are shifting to a risk-off stance, waiting for clearer signals from global trade talks and Washington's legislative process. The Crypto Fear and Greed Index entered extreme fear territory, dropping 8 points to 24, a level that often precedes capitulation.

On the daily chart, XRP fell below a multi-month descending trendline and lost the $2 horizontal support, a major pivot for sentiment. Technical indicators show bears in control: the MACD has formed a bearish crossover, and the Chaikin Money Flow index is nearing negative territory, indicating institutional outflows.

Given the technical breakdown, XRP is likely to test its next key support at the December low of $1.77 in the coming days. However, the bearish outlook is complicated by robust growth in the network’s core use cases. XRP is gaining ground in RWA tokenization and stablecoin infrastructure, with monthly data showing a 27% surge in RWA-linked value (now exceeding $400 million) and an 11% increase in stablecoin market capitalization on the XRPL network.

While the immediate path of least resistance appears lower, a sustained close back above the $2.00 pivot could signal that the fundamental narrative is beginning to outweigh the technical pressure.