XRP is at a critical juncture as on-chain data and charts show conflicting signals.

XRP has fallen 11.4% so far in December, potentially ending the year in the red and ending a two-year chain of consecutive gains. This decline reflects market weakness, with on-chain data showing increasing selling pressure as XRP flows into Binance.

Despite the unfavorable market conditions, some experts remain quite optimistic. They believe XRP may be preparing for a recovery similar to the 2017 cycle.

The increase in XRP deposits to Binance indicates growing selling pressure.

XRP has faced significant challenges along with the overall market downturn this quarter, consistently recording months of price declines. According to data from CryptoRank, the Token fell 11.9% in October, followed by an even sharper 13.8% drop in November.

The weak trend continued into December, with a further 11.4% decline so far. In this context , Darkfost analysts have pointed to signs of increasing selling pressure.

on-chain data recorded a surge in XRP inflows into Binance starting December 15, 2023, with deposits ranging from 35 million XRP per day and peaking at 116 million XRP on December 19, 2023. This trend emerged after a period of relatively stable and moderate inflows to the exchange.

"These inflows of money into the market are often XEM as a sign that a sell-off is imminent, especially when the price rises too quickly," Darkfost noted.

According to this expert, this change also indicates that investor behavior has changed from before.

"While the majority of the market opted to hold from October, the trend over the past two weeks has shown many investors taking profits on long-term investments, while new market participants are selling at a loss or accepting losses."

A recent report by BeInCrypto also indicated that wallets holding XRP for 2 to 3 years have sharply decreased, from accounting for 14.26% of the total supply on November 26, 2023, to approximately 5.66% on December 26, 2023.

Finally, Darkfost suggests that if the inflow of funds into the exchange remains high or continues to increase, XRP will struggle to enter a true accumulation phase . The expert warns that prolonged selling pressure could prolong the current correction and even lead to a deeper price correction.

Will XRP experience a strong recovery like it did in 2017?

Nevertheless, some market observers remain quite optimistic about the coin's prospects . One analyst even suggested that an Adam and Eve pattern might be forming on XRP's 1-hour chart.

The Adam and Eve pattern is a technical reversal pattern that signals a potential shift from a downtrend to an uptrend. This pattern consists of two fairly distinct Dip : the first Dip , called "Adam," is a sharp V-shape, usually formed by panic selling.

The second Dip , “Eva,” is softer and more rounded, indicating that the price has stabilized and selling pressure has decreased. If the price breaks above the neckline of this pattern, this is generally considered a positive signal, indicating that buyers have regained the upper hand.

In addition, some experts believe that XRP 's current market structure is quite similar to the price action in 2017.

“ XRP movement tracking suggests the price could reach above $15. In 2017, after breaking out of the pattern, the price successfully reached the tracking target. Currently, a similar breakout pattern is underway. This could result in a near eightfold increase, or over 690%,” Javon Marks wrote.

However, it should also be noted that such comparisons are largely based on the repetition of history, while current market conditions may be very different from those of the past.

As 2025 draws to a close, XRP remains at a crossroads. Increased inflows into the exchange signal overwhelming selling pressure, but technical indicators and historical comparisons suggest the possibility of a recovery. Whether these positive signals are strong enough to overcome the weakening on-chain foundation will likely become clearer in the coming weeks .