XRP Enters Cooling Phase Following November Leverage Surge

• XRP holds above $2.00, showing controlled pullback after strong rally.
• Key resistance near $2.18–$2.20 must break to shift short-term momentum.
• Futures unwind and spot outflows indicate cautious consolidation ahead.

XRP continues to trade within a defined consolidation range after a strong rally earlier in the cycle. The token surged sharply from the $1.85–$1.90 base before meeting resistance near $2.42. Since then, price action has shifted into a corrective phase rather than a full trend reversal. 

At the time of writing, XRP trades near $2.10, positioning itself between major technical zones. Market participants now focus on whether buyers can defend key supports while momentum stabilizes. 

This phase reflects digestion after rapid gains rather than broad structural weakness. Consequently, the short-term outlook depends on how price behaves around critical levels.

Price Structure Shows Controlled Pullback

On the 4-hour timeframe, XRP maintains a bullish medium-term structure despite recent softness. The current pullback follows a vertical expansion, which often leads to sideways movement. 

Importantly, price continues to form higher lows above the former consolidation area. Besides that, XRP trades close to major exponential moving averages, which often act as dynamic support. 

The $2.03–$2.05 zone aligns with the 100 and 200 EMAs, reinforcing its importance. Moreover, the $2.00 level carries psychological weight and marks a prior breakout retest. A sustained move below $2.00 would weaken the bullish case and expose deeper support near $1.90. However, holding above this area keeps the broader trend intact.

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Overhead levels remain clearly defined as XRP attempts to regain upward traction. Immediate resistance sits between $2.18 and $2.20, where short-term EMAs converge. A decisive push above this area would shift short-term momentum. 

Additionally, the $2.25–$2.26 region stands out as a key Fibonacci retracement level. Reclaiming that zone could revive bullish conviction. Significantly, the $2.40–$2.42 range represents the recent swing high and extension target. A return to that area would confirm trend continuation rather than consolidation.

Derivatives and Spot Flows Reflect Caution

Derivatives data suggests the market has already reduced excess risk. XRP futures open interest expanded sharply during the rally, signaling aggressive leverage use. However, open interest later declined as price cooled, indicating position unwinding. Hence, current levels reflect a healthier leverage reset. 

Spot flow data, however, paints a more cautious picture. Persistent exchange outflows dominate recent sessions, pointing to ongoing distribution. Inflows appear brief and lack follow-through. Moreover, this imbalance aligns with XRP’s gradual price compression. Together, these signals suggest consolidation may continue before the next directional move.

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Technical Outlook for XRP Price

Key levels remain well-defined as XRP trades within a consolidation range after its recent rally. 

Upside levels sit at $2.18–$2.20 as immediate resistance, followed by $2.25–$2.26. A confirmed breakout above this zone could open the path toward $2.40–$2.42. 

On the downside, $2.03–$2.05 marks the first support, reinforced by major EMA confluence. Below that, $2.00 stands as a critical psychological and structural level. Failure to hold $2.00 risks exposing XRP to deeper support near $1.90–$1.92.

The technical picture shows XRP compressing after a strong impulsive move, suggesting volatility expansion ahead. Momentum has cooled, but the broader bullish structure remains intact. 

Will XRP move higher? 

The near-term direction depends on whether buyers can defend the $2.00–$2.05 zone and reclaim $2.25. Sustained strength could trigger another upside leg. 

However, a clean breakdown below $2.00 would weaken bullish momentum and delay continuation. For now, XRP remains at a pivotal technical zone where confirmation will define the next move.

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