XRP Tests Trendline Support as Bullish Divergence Targets $1.20
XRP is down nearly 5% after a hawkish Federal Reserve outlook triggered a broad risk-off selloff across crypto. The pullback accelerated right after XRP failed to clear the $1.25 resistance area, with price briefly testing $1.16 on June 18. Heavy spot selling below the reclaimed $1.20 level reportedly sparked stop-losses and leveraged liquidations.
Technically, XRP is testing the 23.6% Fibonacci retracement near $1.165 while holding an ascending trendline formed since early June. Momentum is weakening but not deeply bearish: RSI is around 43 and the MACD histogram remains below zero after a bearish crossover. Traders view $1.16–$1.18 as the key demand zone. A break below $1.16 could expose the June swing low near $1.12, while reclaiming $1.20 may reactivate levels at $1.23, $1.26 and potentially $1.29.
On the derivatives side, CoinGlass liquidation heatmaps show large leverage clusters near $1.30 and additional pockets toward $1.34, which could act as magnets and fuel a short squeeze if XRP regains control.
Fundamentally, Ripple continues expanding: it acquired an equity stake in payments firm Flutterwave (valued at $3.3 billion) and expects a $1 billion revenue run rate for 2026 (excluding XRP held on its balance sheet). Still, macro risks remain the dominant threat if risk appetite deteriorates.
Key focus for traders: hold XRP above $1.16–$1.18; watch $1.20 for confirmation and $1.30/$1.34 for potential liquidation-driven upside.
Neutral
The news is mixed for XRP. Macro conditions are currently a headwind: a hawkish Fed message kept the higher-for-longer risk backdrop intact, and the article links XRP’s drop to a broad risk-off move. That typically pressures leveraged crypto positions and can extend downside if support breaks.
However, the technical picture provides a constructive offset. XRP is testing trendline/Fibonacci support and, importantly, analysts cited a bullish divergence on the 3-day chart (selling pressure losing momentum despite lower lows). In prior similar setups, bullish divergence near a well-defined support zone often precedes a rebound attempt, but the magnitude depends on whether price can reclaim nearby resistance.
Derivatives data adds another conditional factor: liquidation clusters near $1.30 and $1.34 can create upside “gravity” via short squeezes if XRP regains control above $1.20. That means short-term trading could become volatility-driven rather than purely directional.
Net effect: neutral overall. Near-term bias is cautiously bullish only if XRP holds $1.16–$1.18 and reclaims $1.20; otherwise, a move to $1.12 becomes more likely. Longer-term, Ripple’s Flutterwave investment and revenue-run-rate guidance are supportive fundamentals, but they are not enough to offset macro-driven risk appetite in the immediate term.