XRP to $2 by Year's End? Unusual Historical Setup Appears

XRP is trading lower in the last 24 hours, down 1.41% to $1.88, extending its drop into the third day from a high of $1.95 on Dec. 20.

Amid the price drop, recent on-chain data analysis by Santiment reveals that XRP Sentiment has slipped back to negative.

However, this presents a silver lining: a sentiment drop into the bearish zone increases the likelihood of a strong price increase.

According to Santiment, XRP is seeing much more negative social media commentary than average. It notes that, historically, this setup leads to price rises, adding that when retail traders have doubts about a coin's ability to rise, the rise becomes significantly more likely.

XRP to $2 by year's end?

XRP fell over the last 24 hours as a recovery attempt from weekend lows stalled below key resistance, as the technical structure still remains fragile.

Selling pressure intensified late Sunday as the XRP price fell near the $1.95 high, resulting in a move back below the psychological $1.90 level. This created a pattern of lower highs that has defined recent sessions, tilting short-term momentum to the downside.

XRP price action remains in a range, as traders reflect indecision rather than capitulation. A decisive break of the $1.95 level might be needed to improve short-term technical structure to target $2 once again, while a drop below the current $1.87 low might see XRP target lower levels, potentially at $1.77 or even $1.50.

What to watch now

Technical signals remain mixed, with bullish divergences emerging on momentum indicators, indicating that selling pressure might be easing near recent lows. However, caution still remains on the market. This is because XRP is still trading below its major moving averages on longer time frames. This trend has, in prior times, seen deeper price drops when sustained.

With just eight days to the end of 2025, traders are watching to see what comes next for the XRP price: will it make a reversal to retest $2 once again or fall lower?