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The price of XRP has risen by 10% since the beginning of December. This growth is in line with the general recovery of the market. Many XRP holders expect the price to rise further, but they should be aware of several worrying factors.
These factors may limit XRP’s ability to recover this month. The following analysis breaks down.
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Factors that may create new selling pressure on XRP in December
Cryptoquant data shows sharp increase in XRP ledger speed. It reached its highest level this year.
This indicator measures the transfer frequency of assets in the network. The sharp increase indicates that XRP is not frozen in cold wallets or held for long-term purposes. Rather, it is quickly exchanged between market participants.
Crypto On Shin, an analyst at Crypto Quant, explains, This growth often indicates high liquidity and strong participation by traders. It could also include large transactions from the “whale” market.
The indicator itself remains neutral, but sharp spikes often lead to large price fluctuations. As a result, any negative catalyst at this time could push XRP lower and undo the recovery that occurred at the beginning of the month.
Negative signs are already emerging. The first is an increase in short-term positions. This growth has created significant selling pressure in the futures sector.
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Funding rates remain mostly negative, indicating that short positions prevail. This reflects an increasingly bearish sentiment among traders. Historical data also shows that the decrease in the deep funding ratio in April coincides with XRP falling below $2.
The analyst PelinayPA predicted that “As more traders enter short positions in the derivatives market, the continuation of the trend becomes more likely, as a persistent short squeeze keeps the appetite for opening long positions low. In these conditions, the probability of retesting the price area of ​​$2.0-$1.9 increases”. .
Overall, the recovery in early December is not strong enough to reverse the broader downward trend that has persisted since July. PelinayPA’s opinion remains reasonable under the circumstances.
Selling pressure may also come from Korean investors. CryptoQuant reports that the XRP balance on Upbit amounts to 6.18 billioncompared to2.6 billion In Binance. The influence of Korean traders cannot be ignored.
XRP reserves on Upbit have been steadily increasing for three consecutive months. It is now at a 2025 high. This trend could generate potential selling pressure for XRP in December.
If Korean investors sell, agreeing with bearish signals from the derivatives market ​​​​​​​​​and Velocity increases, the XRP price may face further decline.
However, XRP ETFs are currently the strongest antidote to potential selling pressure. The data shows that these funds have maintained… Positive net inflows for three consecutive weeks. Vanguard has also ended its years-long ban on cryptocurrencies and will… XRP ETF will be available for trading in December.
