XRP dropped by 11.4% in December, which means the coin will close the year in the red and end its two-year streak of annual gains. The decline reflects a weakening momentum in the market, and on-chain data indicates increasing selling pressure along with rising inflows to Binance.
Despite this bearish situation, some analysts maintain cautious optimism. They claim that XRP may be preparing for a rebound similar to the cycle of 2017.
Rising inflows to Binance signal increasing selling pressure for XRP
The Ripple token struggled along with the broader market this quarter, recording another monthly loss. Data from CryptoRank shows that the altcoin dropped by 11.9% in October, and in November experienced an even stronger decline of 13.8%.
Weakness also persists in December, with XRP down 11.4% this month. During this time, analyst Darkfost pointed out signs of increasing selling pressure.
On-chain data shows a sharp increase in XRP inflows to Binance since December 15, with daily deposits ranging between 35 million XRP and a peak of 116 million XRP on December 19. This increase followed a period of relatively stable and moderate inflows to exchanges. Darkfost stated:
"These inflows are generally interpreted as a potential intention to sell, especially when they rise rapidly."
Moreover, according to the analyst, this change also signals a shift in investor behavior. Darkfost added:
"While a large portion of the market has adopted a holding strategy since October, the trend over the last two weeks indicates profit-taking from older positions and capitulation and selling at a loss by newer participants."
The latest analysis from BeInCrypto also showed that wallets holding XRP for 2 to 3 years sharply dropped from 14.26% of the supply on November 26 to about 5.66% on December 26.
In conclusion, Darkfost added that as long as inflows to exchanges remain high or continue to rise, XRP may struggle to enter a true accumulation phase. The analyst warned that sustained selling pressure could prolong current declines and even push the price lower.
Will the price of the altcoin rebound like in 2017?
Nevertheless, several market observers remain optimistic about the prospects for XRP. One analyst points out that on the 1-hour chart, the coin's price may be forming an Adam and Eve pattern.
The Adam and Eve formation is a technical reversal pattern suggesting a possible change from a downtrend to an uptrend. It consists of two distinct troughs. The first, called the "Adam" bottom, is sharp and V-shaped, reflecting panic in the market.
The second, or the "Eve" bottom, is more rounded, indicating price stabilization and reduced selling pressure. A confirmed breakout above the neckline of this formation is typically a bullish signal, suggesting that buyers are regaining control.
Additionally, some analysts claim that the current structure of the XRP market strongly resembles the price behavior from 2017. Javon Marks. In this context, Javon Marks wrote:
"The target move for XRP is $15+. After the breakout in 2017, the price fully realized this move, and the current very similar breakout seems to be following the same path. This suggests another nearly eightfold increase, or over 690%."
However, it is worth noting that such comparisons heavily rely on historical symmetry, which does not always have to repeat itself under different market conditions.
Meanwhile, as the end of 2025 approaches, the price of XRP remains at a crossroads. Rising inflows to exchanges indicate selling pressure, while technical indicators and historical comparisons suggest a possible rebound. Whether bullish signals will outweigh weakening on-chain fundamentals will become evident in the coming weeks.
To check out the latest cryptocurrency market analysis from BeInCrypto, click here.
