XRP finally found buyers after one of its steepest sell-offs of the year, but the recovery looks more like a stabilization than a trend reversal. The token rebounded from levels last seen before the November 2024 breakout, but each rally continues to run into sellers, leaving XRP trapped between deeply oversold conditions and a market that has continued to de-risk.
News background
• More than 25 million XRP left exchanges in recent days, extending a trend that generally points to accumulation rather than immediate selling.
• XRP-linked ETF products continued to attract capital, with approximately $118 million in inflows recorded during May and cumulative inflows approaching $1.4 billion.
• Analysts and forecast models are increasingly viewing the $1.10-$1.20 area as a potential stabilization zone after XRP’s recent 17% weekly drop.
Price Action Summary
• XRP gained 1.6% during the session, recovering from lows near $1.09 and rising back towards $1.14.
• The strongest move came during the 22:00 UTC session, when volume increased to 145.3 million XRP and pushed the price through resistance near $1.1350.
• Momentum faded towards the close, with XRP falling from $1.1488 to $1.1386 before buyers pulled back to nearby support.
Technical analysis
• The bigger story is that XRP remains trapped inside a descending channel despite the bounce. The rally eased immediate bearish pressure but did not break the broader pattern of lower highs.
• The RSI has fallen to one of its most oversold readings since before the November 2024 rally, a sign that the selling may be running out.
• Currency outflows and ETF inflows continue to point toward accumulation beneath the surface, but the price action still resembles a market trying to find a bottom rather than one starting a new uptrend.
• The rebound from $1.09 is important because it showed that buyers are willing to defend the area, although further buying remains limited.
What traders should keep in mind
• $1.13-1.14 is now the key short-term support zone after the latest rally.
• $1.15 remains the first significant resistance level and the upper limit of the current descending channel.
• A move above $1.20 would be the first sign that XRP is starting to repair the damage from the recent sell-off.
• If support near $1.10 fails again, traders will likely focus on whether the psychologically important $1.00 level becomes the next downside target.
