XRP price has fallen over 5% from its recent high of $1.16, dropping to around $1.10, due to bearish technical signals and weakening derivatives activity. The decline has pushed the token toward a key support zone near $1.
Technical Analysis
The price drop accelerated on June 22 with a surge in volume to 65.4 million XRP, roughly 84% above the weekly average, as XRP was rejected near the upper boundary of a multi-week descending channel. This level has capped recovery attempts since late May. Derivatives markets have also shown signs of weakening participation, with falling futures open interest and reduced leveraged positioning removing a key source of buying support.
On the 4-hour price chart, XRP price is close to breaking below the 78.6% Fibonacci retracement level near $1.118, a support area that had previously slowed selling pressure. The move has shifted attention to the next major downside target around $1.05, which aligns with both the June swing low and the lower boundary of the Fibonacci structure. Additional indicators, such as the MACD and Relative Strength Index, continue to favor sellers.
Market Factors
The daily chart data adds further strength to the bearish case, with XRP remaining below the Supertrend indicator near $1.26, which has acted as dynamic resistance throughout the year. A series of lower highs and lower lows continues to define the market structure, keeping downward momentum intact. Liquidation data highlights strong resistance overhead, with the largest concentration of leveraged positions clustered between $1.14 and $1.17.
Outside technical factors, XRP has faced pressure from a deteriorating risk environment across financial markets, with a sell-off in major technology and semiconductor stocks reducing appetite for speculative assets. Rising concerns about inflation and interest rates have encouraged investors to favor lower-risk assets and yield-generating instruments, making it difficult for cryptocurrencies to attract fresh capital.
Outlook
Unless XRP can reclaim the heavily contested $1.14-$1.17 zone, traders may continue focusing on the $1.05 support area. A break below that level could open the door for a move toward the psychological $1 mark, which would represent the next major downside target on the chart.
Based on reporting from crypto.news.