As of December 10, 2025, the XRP token finds itself at a pivotal juncture. Despite a significant 38% surge in trading volume and a major technical upgrade to its underlying ledger, the cryptocurrency has repeatedly failed to breach the $2.12 resistance level, currently trading around $2.07. This struggle unfolds even as heightened derivatives activity introduces new market risks.
Derivatives Market Signals Potential Instability
A sharp spike in the derivatives market is drawing attention. Funding rates for XRP perpetual swaps exploded by over 360% within a single 24-hour period. This indicates that leveraged traders have aggressively increased their long positions, with futures prices trading at a notable premium to spot prices. Concurrently, aggregate open interest climbed 3.18% to reach $3.76 billion.
This scenario presents a dual-edged sword. While it reflects fresh capital entering the market, such elevated funding rates dramatically increase the risk of a long squeeze. Even a minor price correction could trigger a cascade of liquidations among these leveraged positions.
Technical and On-Chain Developments Provide Context
On the technical front, XRP’s price action has been confined to a range between $2.05 and $2.17. A brief breakout above $2.12 was swiftly rejected, suggesting strong selling pressure at that level. Order book data reveals increased sell-side liquidity above $2.12, a classic pattern of profit-taking by large holders. The Relative Strength Index (RSI) sits at 47.71, pointing to a neutral-to-bearish short-term sentiment.
Should investors sell immediately? Or is it worth buying XRP?
Fundamentally, Ripple has released version 3.0.0 of the XRP Ledger. This update introduces key enhancements for decentralized finance (DeFi), including more precise calculations for Automated Market Maker transactions, bug fixes for multi-purpose token escrows, and new data types for future protocol extensions.
On-chain metrics show mixed signals. The XRP Ledger Velocity hit 0.0324, its highest level in 2025, suggesting tokens are being traded more actively rather than held passively. Conversely, the supply held on exchanges has dropped from $7.03 billion on November 10 to $5.70 billion, an 18.8% decline. Historically, such a reduction can indicate either cautious holding or distribution by investors.
The Path Forward Hinges on Key Levels
The coming trading sessions are crucial for determining XRP’s near-term trajectory. For a bullish trend to resume, the token must achieve a sustained breakout above the $2.12-$2.17 resistance zone. Failure to do so, especially if accompanied by weak volume on recovery attempts, would leave selling pressure in control. The $2.09 level now serves as the first major support.
Broader macroeconomic factors also loom. The upcoming interest rate decision from the U.S. Federal Reserve has the potential to move the entire cryptocurrency complex, as evidenced by Bitcoin’s recent ascent to $94,600. Furthermore, XRP has underperformed the broader crypto market by 1.77%, highlighting its specific technical battle independent of sector-wide momentum.
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