After a clear correction in the fourth quarter, XRP price has been under continuous downward pressure, with most of the earlier gains being retraced. As selling accelerates, the market is beginning to worry that XRP may not be able to sustain the consecutive annual gains of the past two years and could end 2025 with losses. However, some investors still hope that buying interest before the end of the year can bring a turnaround for the price.
On-chain data shows that XRP holders experienced significant loss-selling behavior in the fourth quarter. The actual profit and loss indicator indicates that many investors are choosing to close positions at a loss, which is uncommon among large cryptocurrencies. Typically, long-term holders prefer to wait for a rebound during downturns, but the current selling behavior reflects increased uncertainty about XRP’s short-term prospects, with risk aversion sentiment overtaking long-term confidence.
Looking back at historical performance, XRP’s gains over the past two years have been impressive. In 2023, the price increased by about 81%, and in 2024, it saw a substantial growth of approximately 238%, mainly benefiting from improved regulatory environments and rising market speculation. However, entering 2025, this growth momentum has noticeably weakened. If the current price range persists, XRP’s annual decline could approach 11%, highlighting the impact of macroeconomic changes and shifts in investor sentiment on cryptocurrency prices.
Meanwhile, on-chain activity on the XRP Ledger has also declined. In late December, the number of active trading addresses dropped to around 34,000, hitting a new low for the month. The decrease in trading participation indicates that both retail and institutional investors are losing interest in using and holding XRP. This low activity typically reduces liquidity and actual demand, putting downward pressure on the price.
From a technical perspective, XRP is currently trading at approximately $1.85. To avoid ending the year with a decline, the price needs to rebound and stabilize above $2.10. If it falls below the support level of $1.85, the downside could open up to $1.70. Conversely, if the price can hold the support and break through $1.94, further surpassing $2.00, XRP may have a chance to reverse its annual trend and lay a more stable foundation for 2026.
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