XRP fell to its weakest levels in months, reaching a low of $1.05 early Saturday. This follows six straight days of drops shortly after reaching a high of $1.36 on May 30.
Despite nearly $4 million recorded in fresh XRP ETF inflows and cumulative inflows approaching $1.5 billion, sentiment has largely waned, with XRP falling to the sixth spot in market capitalization behind USDC. The broader crypto Fear and Greed Index has also returned to extreme fear.
XRP dropped from $1.11 to $1.05 in the early Saturday session before recovering slightly to $1.09.
Traders watch potential scenarios as price nears $1
The move to a low of $1.05 has taken XRP into one of the most oversold conditions seen in years, with weekly RSI readings reaching levels that are historically seen near major cycle lows.
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However, the market can stay oversold for longer than traders expect, especially during liquidation-driven declines, which presents a potential consolidation scenario whereby the price trades sideways for a period of time.
The $1.18 level represents an important support level, especially on the weekly chart. This is because it coincides with the weekly MA 200, a crucial level being watched by analysts as it has upheld the XRP price since November 2024. XRP only fell below here during the last October selloff.
Analysts are now watching closely as XRP has fallen below this key support once again, and is currently trading beneath it. This shifts focus to the next support at the $0.92 area, which would mean XRP returning below $1.
A return above $1.18 might be key to XRP price’s short-term recovery, with XRP eyeing $1.6 and $2 next. The larger trend remains bearish until XRP starts regaining previous support levels rather than simply rebounding from oversold conditions.
Evernorth CEO Asheesh Birla highlighted XRP trading interest in Korea. “At Bitcoin Seoul this week, one of the most-traded coins in the country wasn’t bitcoin. It was XRP. On Upbit, Korea’s largest exchange, XRP/KRW consistently ranks among the top traded markets and has repeatedly topped both BTC and ETH on heavy days,” Birla stated in a recent tweet.