XRP's Sequential Buy Setup Emerges at $1.90 – Institutional Buying vs Technical Headwinds

The XRP market is currently at a crossroads. After recent corrections, XRP has settled around $1.97 (down 4.03% in 24 hours), testing critical support around the $2 level. Crypto analyst Ali Martinez has flagged an important technical development: the TD Sequential indicator on the 4-hour timeframe is flashing a buy signal. Yet beneath this bullish technical signal lies a more complex narrative shaped by institutional accumulation and persistent technical weakness.

Institutional Inflows Paint a Different Picture

One of the most striking aspects of XRP’s current market position is the disconnect between price action and institutional behavior. Despite the token’s struggle below key moving averages, U.S. spot XRP ETFs have accumulated over $1.2 billion in assets under management and continue to see positive inflows. On December 5, 2025, these ETFs received approximately $12.84 million in fresh capital, marking their 13th consecutive day of net inflows.

This steady institutional buying suggests that large players view current price levels as accumulation opportunities rather than warning signs. Beyond the ETF space, institutional interest extends further—Digital Wealth Partners has paired algorithmic XRP trading strategies with qualified retirement accounts, while a VivoPower deal to acquire Ripple Labs equity signaled confidence in the ecosystem.

Understanding XRP’s Sequential Technical Setup

The TD Sequential indicator, developed by technical analyst Tom DeMark, is specifically designed to identify the exhaustion points of price trends and predict potential reversals. The indicator’s setup is triggered when nine consecutive bearish candles form—a pattern that signals the conclusion of near-term selling pressure. This exact scenario has now emerged with XRP following its dip below the psychological $2 threshold.

Historical data from Brave New Coin demonstrates that this sequential framework has proven reliable for XRP previously: a December rebound of 18% and an August sell signal that accurately forecasted a 24% decline both validate the indicator’s track record. The current buy signal appearing at the $1.90 support level—where historical price action has repeatedly stabilized—adds credibility to the bullish sequential setup.

Technical Weakness Remains a Concern

While the sequential buy indicator and institutional capital flow paint an optimistic case, the broader technical picture presents obstacles. XRP is trading below all major moving averages, a bearish configuration that typically portends sustained downward pressure. The token has been consolidating within a falling channel, with each recovery attempt running into distribution pressure around $2.04–$2.05.

The $1.90 level serves as the critical near-term support. If this level breaks decisively, the next demand zone sits around $1.80. Market sentiment—currently at 23 on the Crypto Fear and Greed Index—reflects extreme fear, which historically has coincided with capitulation and market bottoms.

The Institutional vs Technical Tug of War

XRP’s near-term direction hinges on whether institutional accumulation can overcome technical weakness and negative sentiment. The sequential framework suggests reversal conditions are forming, yet price must reclaim key moving averages and establish a convincing breakout above the $2.04–$2.05 resistance zone to validate a broader recovery.

For longer-term investors, the current risk-reward setup favors patience and position sizing that accounts for volatility. Short-term traders should monitor Bitcoin correlation, ETF capital flows, and whether XRP can close above and hold the $2.04 resistance level. As December unfolds, the interplay between these three forces—sequential technical signals, institutional buying, and macroeconomic conditions—will likely determine XRP’s next major move.