XRP is down by 8% this week and remains in a bearish trend channel. Analysts warn that a break below key support may trigger a move to $1.09. | Credt: CCN.com
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Key Takeaways
XRP has fallen more than 8% over the past week, to around $1.21, and has extended its medium- to long-term downtrend amid weak investor sentiment.
The token remains trapped in a falling trend channel, a technical pattern that typically signals declining buying interest and continued downside pressure.
Trading volume surged nearly 39% during the decline, making it one of the most important signals to watch.
XRP is showing signs of mounting weakness after falling 8.11% over the past week, with technical indicators suggesting that the token could face another leg lower if a critical support level gives way.
Trading at $1.21 as of June 3, XRP remains trapped in a medium- to long-term falling trend channel, reflecting deteriorating investor sentiment and declining buying interest.
While the token managed a modest 0.83% recovery over the past 24 hours, analysts caution that the broader trend remains bearish.
The key question for traders is whether the recent increase in volume marks the start of a reversal or is merely another phase in XRP’s ongoing downtrend.
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From a chart perspective, XRP continues to display characteristics of a weakening market. The token has been forming a series of lower highs since rejecting the $1.30 region earlier this year, establishing a clear downward trajectory.
The recent breakdown from a rectangle consolidation pattern adds to the bearish outlook. Technical analysts often view such formations as continuation patterns, and XRP’s failure to hold within its previous trading range suggests sellers remain firmly in control.
Momentum indicators reinforce this view. XRP currently trades well below its Arnaud Legoux Moving Average (ALMA) of $1.28, indicating that bulls have yet to regain control of the trend.
XEP MACD remains in negative territory. | Credit: MarketWatch
Meanwhile, both the MACD and Awesome Oscillator remain in negative territory, reflecting persistent downside momentum.
However, the pace of decline appears to be slowing. The MACD histogram has begun flattening, suggesting that bearish momentum is losing some strength.
Similarly, the Connors RSI sits at 55.62, neither oversold nor overbought, indicating there is still room for price movement in either direction.
The most notable signal comes from the Coppock Curve, which currently stands at minus 14.72. Historically, readings this deeply negative have often appeared near major market bottoms in large-cap assets.
While this does not guarantee an immediate reversal, it suggests that long-term downside potential may be becoming increasingly limited.
Critical Support Levels Could Determine XRP’s Next Move
The immediate focus for traders is a cluster of support levels that could decide XRP’s direction for the rest of June.
Short-term support currently sits around $1.20, followed by the May swing low near $1.18 and a more significant demand zone around $1.12.
A decisive daily close below $1.18 would likely expose XRP to further losses toward that lower support area.
From a broader technical perspective, the situation becomes even more concerning if XRP breaks below the longer-term support zone around $1.26 that previously defined its rectangle formation.
A confirmed breakdown from this structure could open the door for a decline toward $1.09 or lower.
Compounding the bearish case is the absence of meaningful support zones between current prices and those lower targets. Without strong buying interest emerging, the path of least resistance remains to the downside.
On the upside, XRP faces resistance at $1.22, followed by the ALMA at $1.28 and the key psychological barrier at $1.30.
Any recovery attempt would likely need to reclaim these levels before the market could begin discussing a broader trend reversal.
Volume Surge Suggests a Potential Turning Point
Despite the bearish setup, one element of the current market structure stands out: volume.
XRP’s 24-hour trading volume jumped nearly 39% while price continued to weaken, a development that often attracts the attention of technical traders.
Such volume spikes during declines can indicate capitulation, where weaker holders exit positions en masse, potentially setting the stage for a recovery.
Adding to this possibility is the relationship between volume and price action. Recent volume peaks and troughs have closely tracked XRP’s major tops and bottoms, a pattern that sometimes precedes trend reversals.
XRP price over the last 24 hours. | Credit: CoinMarketCap
Still, confirmation remains absent. Traders are watching for three potential catalysts: a break above the current $1.18-$1.25 range, a positive MACD crossover, and a turn higher in the Coppock Curve.
Until those signals emerge, XRP remains vulnerable to further downside pressure. While long-term indicators hint at exhaustion building, the prevailing trend continues to favor sellers, leaving the token at risk of testing lower support zones in the weeks ahead.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
