MarketsShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailXRP Approaches $1.10 as Liquidation Selling Drives Prices Down
XRP has decreased another 5% following a significant volume breakdown that overwhelmed support around $1.20, prompting traders to consider if this downturn signifies capitulation or the onset of a more profound decline.
By Shaurya Malwa Jun 5, 2026, 2:53 p.m. 2 min readMake preferred onKey Insights:
- XRP dropped to its lowest levels in several months, briefly dipping below $1.10 before buyers entered the market around $1.09.
- Despite approximately $4 million in new XRP ETF inflows and total inflows near $1.5 billion, market sentiment has turned negative as XRP fell behind USDC in market capitalization and the overall crypto Fear & Greed Index plunged into extreme fear.
- Experts believe that $1.09 to $1.10 represents crucial support, while $1.12 to $1.13 is the initial recovery target, with the general trend remaining bearish until previous support levels are convincingly regained with increased rebound volume.
XRP is no longer contending with the $1.20 mark but is now focused on whether the $1.10 level can hold. The recent selloff was characterized by a volume typically seen in forced liquidations rather than orderly selling, driving the token to its lowest levels in months before buyers stepped in near $1.09.
Contextual Background
• XRP ETFs saw inflows of about $4 million after experiencing their first daily outflow in three weeks, raising cumulative inflows to around $1.5 billion.
• Overall market sentiment across the cryptocurrency sector has sharply declined, with the Fear & Greed Index dropping into extreme fear as traders reacted to broader macroeconomic uncertainties.
• Following the selloff, XRP's market capitalization fell below $75 billion, causing it to slip behind USDC in market value rankings.
Price Movement Overview
• XRP's price dropped from $1.17 to $1.11 within a 24-hour period, reaching lows around $1.09 before a slight recovery.
• The most significant movement occurred during the June 5 06:00 UTC session, where trading volume surged to 268.2 million XRP, accelerating the downward trend.
• A failed attempt to rally towards $1.133 was quickly reversed, leading to new lows before buyers returned near $1.10.
Technical Insights
• A critical observation is that support levels are increasingly becoming resistance. What was previously a buying range of $1.20-$1.25 has transformed into a zone where sellers are reemerging.
• The dip below $1.10 pushed XRP into one of the most oversold conditions seen in years, with weekly RSI readings hitting levels historically associated with major cycle lows.
• However, being oversold does not guarantee a bullish reversal. Markets can remain in an oversold state longer than traders anticipate, particularly during declines driven by liquidations.
• The bounce from $1.09 suggested seller exhaustion, but the recovery volume has been weaker than the preceding sell-off.
What to Monitor for Traders
• The $1.09-$1.10 range is now the most critical support area. A breach could shift focus to the $0.92 level, as noted by several analysts.
• The $1.12-$1.13 range needs to be reclaimed for any stabilization narrative to gain traction.
• The overarching trend remains bearish until XRP manages to regain prior support levels rather than merely bouncing from oversold conditions.
• Traders seeking signs of a lasting bottom will likely want to observe stronger rebound volumes compared to sell-off volumes, which the market has yet to demonstrate.
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