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XRP’s Technical Breakdown on Binance Signals Potential Retest of $1.60 as Key Support Fails

XRP’s Technical Breakdown on Binance Signals Potential Retest of $1.60 as Key Support Fails

Published:
2025-12-24 22:08:13
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On December 25, 2025, XRP's price action on major exchanges, including Binance, has taken a concerning turn as it decisively breached a critical long-term support level. The asset broke below the $1.95 Fibonacci support—a zone that had remained resilient throughout the market's volatility in 2025. This breakdown is a significant technical event, invalidating a multi-year behavioral support level that many traders and analysts were watching closely. Currently trading at $1.86, reflecting a 1.25% decline, XRP faces mounting bearish pressure. The trading volume accompanying this move, reported at $2.08 billion, indicates substantial liquidity but also points to a potential weakening of bullish conviction among market participants. The breach suggests a high probability of further downside, with the next major target being the $1.60 level. Market structure analysis reveals similarities to past breakdowns where such key supports failed, often leading to cascading liquidations of Leveraged positions and accelerated sell-offs. For traders on Binance and other platforms, this shift alters the near-term risk/reward profile. The loss of the $1.95 level transforms it from a buying zone into a new resistance area, meaning any recovery attempts may now be capped around that price. This development underscores the importance of dynamic risk management in the current environment, where long-held technical levels are being tested. The coming sessions will be crucial in determining whether this is a false breakdown or the start of a deeper corrective phase for XRP.

XRP Breaches Key $1.95 Support as Bearish Momentum Threatens $1.60 Retest

XRP's breakdown below the $1.95 Fibonacci support level—a zone that held firm through 2025's volatility—signals potential downside toward $1.60. The asset now trades at $1.86 (-1.25%) with $2.08B in volume, reflecting both liquidity and weakening conviction.

Technical charts show this breach invalidates a multi-year behavioral support level. Market structure resembles past breakdowns where leveraged position unwinding preceded volatile swings rather than immediate directional continuation.

'When long-term floors crack, they become ceilings,' notes a derivatives trader at Binance. The question now is whether institutional accumulation will emerge NEAR $1.80 to stall the slide.

Binance Sees Sharp Whale Pullback, Signaling Shift in Bitcoin Sentiment

Binance experienced a 51% decline in Bitcoin whale inflows during December, with monthly deposits dropping from $7.88 billion to $3.86 billion. This reduction suggests diminished near-term selling pressure, as large holders typically transfer assets to exchanges when preparing to sell.

The shift in whale activity on Binance—a key liquidity hub—often precedes broader market sentiment changes. Despite the pullback, whales still moved $466 million, demonstrating their continued influence over market liquidity conditions.

Analysts interpret the decreased deposit volume as potentially beneficial for spot markets, allowing prices to find equilibrium without excessive selling pressure. The trend highlights how whale behavior on major exchanges can serve as a leading indicator for cryptocurrency markets.

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