XRP has dropped 11.4% in December, putting the token on track to end 2025 in negative territory after two consecutive years of gains. On-chain data shows rising exchange inflows that signal increased selling pressure, though some analysts see potential for a recovery pattern similar to the asset's 2017 cycle.
What Happened: December Losses
XRP posted an 11.9% decline in October and a 13.8% drop in November. The selling continued into December with the current 11.4% loss.
Analyst Darkfost identified a sharp increase in XRP deposits to Binance starting Dec. 15. Daily inflows ranged between 35 million XRP and peaked at 116 million tokens on Dec. 19, following weeks of stable exchange activity.
"These inflows are generally interpreted as a potential intent to sell, especially when they increase rapidly," Darkfost stated.
The analyst noted a shift from the holding strategy that dominated since October toward profit-taking by long-term holders and capitulation by recent buyers. BeInCrypto analysis found wallets holding XRP for two to three years declined from 14.26% of supply on Nov. 26 to 5.66% on Dec. 26.
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Why It Matters: Recovery Potential
Darkfost warned that sustained exchange inflows could prevent XRP from entering an accumulation phase and may extend the correction. However, some analysts remain optimistic about near-term prospects.
One market observer noted a potential Adam and Eve pattern forming on XRP's hourly chart—a technical reversal formation consisting of a sharp V-shaped bottom followed by a rounded bottom that can signal reduced selling pressure.
Analyst Javon Marks drew comparisons to XRP's 2017 price behavior.
"Measured move for XRP says $15+. Prices, after breaking out in 2017 followed through completely on its measured move and prices, with a recently highly similar breakout, looks to be right on track to do the same," Marks wrote, projecting a potential 690% increase.
The token's trajectory depends on whether technical indicators can overcome weakening fundamentals shown in exchange flow data.
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