XRP price has dropped sharply over the past three days, falling to $2.03 on December 6. This represents a decline of more than 44% from its highest point this year and brings the token’s market cap to around $120 billion.
ETF Inflows Remain Strong
The decline comes even as XRP ETFs continue to attract investors. According to SoSoValue, the funds added $10.2 million on Friday alone, bringing weekly inflows to $230 million.
Since their launch, XRP ETFs have accumulated over $897 million in inflows. Canary’s XRPC leads with $363 million, followed by Grayscale’s GXRP ($211 million), Bitwise’s XRP ($187 million), and Franklin Templeton’s XRPZ ($134 million). Including the REX-Osprey ETF, these funds now hold over $972 million in total assets.
Market Sentiment Drives Price Down
The drop in XRP price is linked to broader crypto market weakness. Bitcoin and other altcoins have also erased recent gains as futures open interest declines and liquidations increase. Over the past 24 hours, XRP positions worth $7.6 million were liquidated, adding further selling pressure.
Technical Factors Suggest More Downside
Technical analysis shows that XRP began falling after testing the upper side of a descending trendline, which forms the top of a falling wedge pattern. The token remains below its 50-day and 100-day exponential moving averages and under the Supertrend indicator, signaling a continued bear market.
Analysts see a key support level at $1.8520. If XRP breaks below this level, it could face further declines.
Bottom Line
XRP ETFs continue to attract investors, but broader market weakness and technical factors are driving the token lower. Traders will be watching the $1.85 support level closely for signs of a potential rebound or further losses.
