Summary XRP trades near $2.04 as price tests the long-term ascending support that has held since spring. Short-term EMAs between $2.18 and $2.33 continue to cap every bounce inside the multi-month triangle. Options open interest surges 184 percent as traders position for a major volatility event. By Jainam Mehta XRP ( XRP-USD ) enters December at one of its most consequential technical levels of the year, with price hovering just above a long-term ascending support trendline that has absorbed every major decline since early spring. The broader structure has tightened into a large multi-month triangle, where a pattern of lower highs is now converging with a rising base that has repeatedly anchored the asset during periods of heavy selling. The market is bracing for a decisive breakout after nearly six months of compression. Price continues to struggle below the declining 20-day and 50-day EMAs, both clustered between $2.18 and $2.33, where sellers mounted a firm defense throughout November. The 100-day and 200-day EMAs form a heavier ceiling between $2.48 and $2.50, reinforcing the view that upside attempts remain corrective unless price can reclaim this broader resistance zone. Technical structure tightens as buyers defend long-term trendline XRP’s daily chart shows the asset moving deeper into the apex of its multi-month triangle. Sellers maintained pressure throughout November, driving each bounce into another lower high along the descending arm of the formation. Monday’s decline toward $2.04 underscored lingering hesitation among buyers, though demand continues to emerge near the long-term trendline that sits just above $1.98. XRP price dynamics (Source: TradingView) The RSI mirrors this cautious stance. Momentum has spent weeks stuck in a weak mid-range zone, failing to break above 55 or register any meaningful bullish divergence. The indicator now sits near 41, signaling mild bearish pressure without entering extreme conditions. Historically, RSI bounces from the 35–40 region have provided short-term relief, but without a break above the descending trendline, momentum remains capped. Spot flow data, however, introduces a notable shift. While many major assets saw persistent outflows in recent weeks, XRP recorded a $3.5 million inflow on its latest reading. Though modest, the timing coincides with price retesting a critical long-term support, suggesting that selective accumulation may be beginning to reappear. The magnitude of inflow remains shallow compared to earlier accumulation phases, meaning buyers are cautious but not absent. Derivative markets signal preparation for a major move The derivatives landscape reinforces the view that traders are positioning ahead of a significant breakout. Open interest has fallen more than 6 percent to $3.87 billion, reflecting a measured reduction in leveraged exposure as volatility narrows inside the triangle. This type of contraction typically precedes explosive moves, as traders step aside before momentum expands. At the same time, futures volume jumped more than 68 percent, and options activity surged. Options open interest is up 184 percent, while volume increased more than sixfold, showing that volatility bets are rapidly building. Traders are clearly positioning around the apex, expecting the next directional move to carry meaningful momentum. Liquidation patterns add another layer to the evolving picture. Nearly $16 million in short liquidations were recorded in the past 24 hours, indicating that sellers may be losing control near the trendline. While shorts dominated throughout November, the sudden spike in short-side wipeouts signals vulnerability and suggests that bears may be overextended as price tests major support. What comes next for XRP The broader setup leaves XRP at a make-or-break point. A break below the rising trendline near $1.98 would expose deeper support at $1.87 and $1.72, marking a shift into a broader corrective cycle. On the upside, reclaiming the $2.33 to $2.40 region would invalidate the descending arm of the triangle and open the door toward $2.58 before testing the wider range near $2.90. With spot inflows improving, options activity soaring, and short liquidations rising, the market appears to be preparing for a high-momentum move. Whether buyers can convert these early signals into a sustained reversal remains the key question heading into early 2026. Previously, we highlighted XRP’s tightening triangle structure and the risk that repeated failures at the short-term EMAs would constrain momentum. The current behavio r near long-term support reinforces those themes, with rising options interest now signaling that traders are preparing for a decisive breakout. This material may contain third-party opinions; none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
