XRP Sinks to 3-Month Low Amid Selling Pressure Despite Exchange Inflows

XRP plunged to its weakest level in over three months as persistent selling overwhelmed signs of exchange outflows, leaving the market caught between conflicting signals. While token movements off exchanges typically suggest accumulation, price action indicates sellers remain in control during recovery attempts.

News Background

• Over 25 million XRP exited exchanges following a large weekly inflow, indicating some investors moved tokens into longer-term storage after the price drop.
• Spot XRP ETFs recorded fresh inflows, bringing cumulative flows to approximately $1.42 billion, though this demand has not yet reversed the downtrend.
• High-leverage positions were heavily liquidated in May, with most long trades already wiped out as XRP rebounded from the $1.28 level.

Price Action Summary

• XRP fell from $1.3384 to $1.3208, reaching a 15-week low during the session.
• The key breakdown occurred on 55.03 million in volume, breaching support near $1.3320.
• Selling extended toward $1.314 before a modest rebound pushed XRP back toward $1.32.

Technical Analysis

• Despite constructive exchange outflows, XRP continues to face selling pressure during recoveries. The breakdown below $1.3320 maintains a weak short-term structure, with $1.34 now the critical level for buyers to reclaim.
• A large short-liquidation cluster exists between $1.34 and $1.40, presenting potential for a sharp move higher if XRP breaks back into that range.
• The current tape remains defensive, with sellers dictating lower highs until momentum shifts.

What Traders Should Watch

• Immediate support at $1.31: A break here risks a drop to $1.28 and then $1.20.
• First recovery target at $1.34: Reclaiming this level could unlock upward momentum toward $1.37 and $1.40.
• The setup remains unstable: Exchange outflows signal accumulation, but price action highlights persistent selling pressure—no clear winner has emerged yet.

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