XRP Clings to $2 as Network Activity Slows — Trouble Ahead?

XRP trades near $2.02 after losing 19.37% over the last 30 days, while price action over the last seven days shows tight consolidation above the $2.00 level. This sideways movement comes as broader crypto markets cool following heightened volatility earlier in the week. 

Can XRP maintain this floor as network activity and retail participation show signs of fatigue?

Market Calms After Federal Reserve Shock

XRP extended its range-bound behavior as markets absorbed the Federal Reserve’s recent policy decision. Investors reacted to a hawkish rate cut that highlighted lingering inflation risks and labor market weakness. 

This backdrop has kept risk assets cautious, and XRP reflected that tone by holding steady rather than attempting a recovery. The environment continues to favor patience over aggressive positioning.

On-Chain Activity Shows Clear Slowdown

Data from CryptoQuant shows a noticeable decline in activity on the XRP Ledger. Active addresses averaged around 20,000 earlier this week, down from nearly 25,000 in late November and about 32,000 in mid-November. 

CryptoQuant

This steady drop signals reduced user engagement across the network. Lower participation often translates into softer spot demand, which explains the lack of upward momentum despite price stability.

Retail Demand Remains Muted

Derivatives data reinforces the slowdown narrative. XRP futures Open Interest hovered near $3.72 billion, far below the $9 billion level recorded in October during the broader market crash.

Coinglass

The decline from the July peak of $10.94 billion shows that leveraged traders have reduced exposure. When Open Interest stays low, traders often wait for clearer signals before committing capital. This behavior keeps volatility contained and price action compressed.

ETF Inflows Provide a Counterbalance

Despite weaker retail signals, demand for XRP exchange-traded funds has remained steady. On December 12, XRP spot ETFs recorded net inflows of $20.17 million, according to data from SoSoValue. The Franklin XRP ETF led the session with $8.7 million, raising its cumulative inflows to $185 million. 

Sosovalue

The Bitwise XRP ETF followed with $7.85 million, bringing its historical total to $213 million. Overall, XRP spot ETFs now hold $1.18 billion in net assets, with cumulative inflows approaching $975 million. These figures show sustained institutional interest even as on-chain metrics soften.

Technical Picture Centers on $2.00

From a technical perspective, XRP continues to trade sideways above the $2.00 support zone. Price has remained locked between roughly $2.00 and $2.05, creating a tight range that reflects indecision. Bulls and bears continue to test each other at this level. Can this compression last much longer? Traders often expect a decisive move after prolonged consolidation, though timing remains uncertain.

Source: X

Social sentiment around XRP shows pockets of optimism, yet market data paints a quieter picture. Ripple has continued expanding its infrastructure footprint, including stablecoin initiatives and institutional integrations. However, these developments have not translated into immediate price movement. 

The gap between advancing fundamentals and subdued market reaction has defined XRP’s recent behavior.

Focus Shifts to the Next Test

As XRP hovers near $2.02, attention remains fixed on whether this support can withstand ongoing pressure. Analysts continue to flag $2.00 as a critical level, with $1.20 often cited as the next major downside area if support fails. 

For now, XRP reflects a market in pause mode. Price holds steady, participation cools, and investors wait. The next move may depend less on headlines and more on whether demand returns to the ledger and derivatives markets.