XRP slides toward $1.10 as liquidation selloff tests key support
XRP is trading near multi-month lows after a liquidation-driven selloff overwhelmed support around $1.20. On Jun 5, XRP dropped about 5% as high volume surged to roughly 268.2M XRP during the 06:00 UTC window.
Price action matters for traders: XRP briefly broke below $1.10, then bounced near $1.09 as dip buyers appeared. A rebound attempt toward $1.12–$1.13 failed and price rolled back to fresh lows, leaving uncertainty over whether the move is capitulation or the start of a deeper leg.
Fund flows are not lifting sentiment. Despite around $4M in fresh XRP ETF inflows (cumulative inflows near $1.5B) and ETF inflows after three weeks of outflows, market mood deteriorated. Traders also reference broader risk conditions: the Crypto Fear & Greed Index moved into extreme fear, and XRP slipped behind USDC in market-cap rankings.
Key technical levels to watch: $1.09–$1.10 is the most important support zone. If XRP loses it, focus may shift toward the $0.92 area. For stabilization, XRP needs to reclaim $1.12–$1.13 with stronger rebound volume than the selling volume that drove the breakdown.
Bottom line for XRP traders: the market is oversold, but the lack of convincing recovery volume keeps the broader trend bearish until prior support flips back to resistance and then clears.
Bearish
The article highlights liquidation-style selling overwhelming XRP’s $1.20 area and driving a breakdown that briefly pushed XRP below the $1.10 support zone. Even though the asset is oversold (and ETF inflows are still positive), the key trading signal is market structure: support is flipping back into resistance, and the bounce lacked stronger volume than the selloff.
Historically, liquidation-driven drops often produce sharp oversold bounces, but without follow-through volume they can quickly turn into “dead-cat” rallies and extend the downtrend. Here, XRP’s failure to hold above ~$1.10 and the unsuccessful move toward $1.12–$1.13 suggest traders are still de-risking.
Short term, this keeps downside risk elevated: losing $1.09–$1.10 would likely accelerate moves toward $0.92. Long term, sustained recovery would require reclaiming former support with conviction (not just a low-level bounce), and macro sentiment improving would be a tailwind. Until then, the price action implies continued bearish control despite positive ETF inflows.