XRP has dropped 3.7% to trade below the critical $1.40 support level, indicating renewed downside risk as sellers dominate the market. The cryptocurrency is now fluctuating within a descending channel between $1.38 and $1.42, with repeated failures to reclaim the $1.40–$1.41 resistance zone. This technical breakdown suggests that selling pressure remains strong, as recovery attempts have consistently faltered since mid-March.
The loss of the $1.40 support has shifted momentum back toward sellers, raising concerns about the token’s stability. If the $1.38–$1.40 range fails to hold, XRP could test the thinner support zone around $1.30–$1.32, potentially accelerating further declines. Institutional participation appears subdued, with only $636K in weekly inflows reported, reflecting a lack of bullish sentiment in the market.
Traders should closely monitor the $1.38–$1.40 area for signs of support. A decisive break below this range could signal a more significant downturn, while stabilization might allow for a cautious recovery attempt toward higher resistance levels.
Source: coindesk.com