XRP Stabilizes Above $1.10 After Major Sell-off

XRP Price Movement

XRP has seen a recovery after hitting four-month lows, stabilizing above $1.10 with buyers defending the $1.09 level. Despite this rebound, the token is still trading within a broader downtrend, with key resistance levels identified around $1.15 to $1.20.

Market Dynamics

Even with over 25 million XRP flowing out of exchanges recently, which typically indicates accumulation, the price action suggests traders are more focused on finding a bottom than rallying. Inflows into XRP-linked exchange-traded funds (ETFs) have remained strong, with approximately $118 million flowing in during May, contributing to a cumulative total of about $1.4 billion.

“The bounce from $1.09 matters because it shows buyers are willing to defend the area,” a market analyst noted, although the lack of follow-through buying implies that the token's price stabilization does not yet indicate a trend change.

Technical Indicators

Currently, XRP sits within a descending channel and shows signs of being oversold, as indicated by the Relative Strength Index (RSI) hitting a low not seen since before a significant price rally in November 2024. Traders should keep an eye on the $1.13-$1.14 zone as a crucial support level, while the first key resistance is at $1.15. A breakout above $1.20 could indicate a recovery, whereas failing to hold the support at $1.10 may lead to further declines, targeting $1.00.