XRP Price Plunge: Token Crashes Below $2 as Long Liquidations Exceed $584 Million

XRP just got a brutal reality check. The token sliced through the $2 psychological barrier, triggering a cascade of liquidations that wiped out leveraged positions worth over half a billion dollars.

The Liquidation Avalanche

When the price broke below that key level, it wasn't a gentle slide—it was a trapdoor. Automated systems on derivatives exchanges pounced, forcibly closing hundreds of millions in bullish bets. The $584 million figure isn't just a statistic; it's a direct measure of over-leveraged optimism meeting an unforgiving market.

Market Mechanics in Overdrive

This kind of event acts like a self-feeding fire. Each forced sale adds downward pressure, potentially triggering more liquidations at lower price points. It's the dark side of crypto's high-octane leverage—a feature that can amplify gains but devastate portfolios when the tide turns.

The Aftermath and the Road Ahead

Now, the market searches for a new floor. These liquidation events often create a vacuum—they flush out weak hands and can sometimes set the stage for a stabilization, but that's never guaranteed. Traders are left to reassess their thesis amidst the wreckage.

It's a classic, cynical finance playbook: use massive leverage to chase returns, then watch the market efficiently separate you from your capital when sentiment shifts. For XRP, the path back above $2 just got a lot steeper.

TLDR

• XRP dropped 4.3% in 24 hours, falling below the $2 support level with long liquidations hitting $584 million
• Trading volumes doubled to $3.9 billion, showing strong selling pressure after the bearish breakout
• XRP-linked ETFs have recorded positive net inflows for 21 consecutive days despite price weakness
• Technical analyst Dark Defender predicts XRP could reach $5.85 based on Elliott Wave theory suggesting Wave 4 correction is complete
• Key support sits at $1.86, with a break below potentially leading to a 10% drop toward $1.58

XRP has fallen below the $2 mark after declining 4.3% in the past 24 hours. The move comes as broader market pressure increases across the crypto sector.

The drop pushed XRP through what traders considered a key psychological support level. Bulls had attempted to defend the $2 zone for several days.

Long liquidations reached $584 million during the selloff. This figure shows many traders were caught off guard by the downward move.

Trading volumes doubled to $3.9 billion in the past day. The increased activity suggests strong selling pressure following the breakdown.

XRP is currently trading NEAR $1.86. This level represents the next support area after the break below $2.

Technical Analysis Points to Further Downside Risk

The 4-hour chart shows the break below $2 happened with high volume yesterday. The price quickly moved down to test support at $1.86.

A move below $1.86 could push XRP down to $1.58. This WOULD mark a 10% decline from current levels and match the token’s October 10 lows.

The Relative Strength Index hit 21.5 on the 4-hour timeframe. This reading indicates extreme oversold conditions in the short term.

The last two times RSI reached this level, XRP saw brief price recoveries. However, a break below current support would suggest the downtrend remains intact.

Analyst Maintains Bullish Long-Term Outlook

Technical analyst Dark Defender continues to predict a major rally for XRP. His analysis uses Elliott Wave theory to map potential price movements.

Analyst Dark Defender Who Correctly Predicted $XRP Crash to $1.88 Sets His Next Price Target of $5.85.pic.twitter.com/AeYqfLadVR

— TheCryptoBasic (@thecryptobasic) December 16, 2025

Dark Defender believes XRP has completed Wave 4, a corrective phase that began in February. The completion of this wave could signal the start of Wave 5, which typically brings strong upward momentum.

According to his analysis, Wave 4 saw XRP dip to $1.60 in April. The price then rebounded to around $3.66 in July before settling near $1.88.

The analyst identified a key support range between $1.88 and $2.22. XRP’s stabilization near the lower end of this range supports his view that the corrective phase is complete.

Dark Defender has set a target of $5.85 for the next rally. This projection represents a gain of over 200% from current price levels.

His forecast is based on historical wave patterns and structural analysis of XRP’s past performance. The analyst has tracked this wave structure throughout 2025.

Institutional Interest Remains Strong

Despite the price decline, XRP-linked exchange-traded funds continue to see positive flows. These ETFs have recorded net inflows for 21 straight days.

JUST IN: ETF clients buy $10.89 million worth of $XRP, bringing total ETF-held net assets to $1.12 billion. pic.twitter.com/T3JoQ28N0K

— Whale Insider (@WhaleInsider) December 16, 2025

The sustained inflows reflect ongoing interest from institutional buyers. Long-term holders in regulated markets continue to add exposure to XRP.

XRP currently trades near $1.88 with declines visible on daily, weekly, and monthly charts.