XRP has dropped through the $1.07 support area as traders brace for another leg lower amid mounting bearish pressure.
Summary
- XRP has fallen below the key $1.07 support level, increasing the risk of a deeper correction.
- Bearish chart patterns, liquidation clusters, and weak momentum continue to favor sellers.
- Regulatory uncertainty and macroeconomic headwinds have added pressure to the token’s near-term outlook.
According to data from crypto.news, XRP (XRP) price has fallen about 8% over the past week, extending losses after breaking below the $1.085 support area that had contained the price for several sessions.
The breakdown has left the token trading near $1.07 and shifted short-term sentiment firmly in favor of sellers as traders contend with regulatory uncertainty, weak on-chain activity, and a cautious macro backdrop.
Technical breakdown exposes lower support levels
The daily chart shows XRP slipping beneath the Murrey Math 3/8 support level at $1.0742, a zone that had acted as the lower boundary of its recent trading range. Price is now approaching the next major Murrey support near $0.9766, while the 14-day RSI sits around 33, leaving momentum close to oversold territory but without any confirmed bullish divergence.
On the four-hour chart, XRP continues to trade inside a descending channel after rejecting the upper trendline during its latest recovery attempt. Supertrend remains bearish with resistance near $1.115, while the Aroon indicator favors sellers, with Aroon Down above 70 and Aroon Up at zero, suggesting the prevailing downtrend remains intact.
Unless buyers reclaim the $1.11-$1.12 region, rallies may continue to attract selling pressure.
CoinGlass liquidation data shows the largest concentration of leveraged short liquidations around $1.09, while another significant liquidity cluster sits near $1.045 below the current price. Those zones could become near-term magnets as leveraged traders are forced out of positions.
Meanwhile, the absence of equally large liquidation pockets immediately above current levels suggests buyers have limited fuel for a sustained squeeze unless fresh demand enters the market.
Commenting on the market structure, well-followed analyst Altcoin Sherpa argued that XRP continues to weaken across multiple timeframes.
“Honestly doesn’t look great on the lower time frames (or any time frame) and I think this probably keeps grinding lower. Wouldn’t be surprised to see this go to like $0.75.”
Sherpa’s view aligns with the high-volume profile shown on his chart, where the next major demand zone sits well below current prices.
Macro risks and regulatory uncertainty continue to weigh on sentiment
Beyond the charts, traders are also watching an approaching July 1 regulatory deadline under California’s Digital Asset Financial Assets Law. Ripple has not yet appeared on the state’s public registry of confirmed applicants, prompting concerns that administrative delays could affect regional operations involving its RLUSD stablecoin and payment services. Although the issue is limited to California, uncertainty has added another layer of caution to XRP trading.
On-chain activity has offered little encouragement. Exchange inflows increased as large holders moved tokens onto trading platforms, suggesting some whales preferred reducing exposure rather than accumulating in weakness.
At the same time, XRP Ledger activity has remained subdued following the conclusion of Ripple’s long-running SEC case, leaving the market without a fresh catalyst to attract meaningful retail participation.
Global macro conditions have added further pressure. Rising geopolitical tensions in the Middle East have pushed energy prices higher and revived concerns that inflation could remain elevated. These developments have reduced expectations for Federal Reserve rate cuts and encouraged investors to rotate away from higher-risk assets, including cryptocurrencies.
As Bitcoin has struggled to regain momentum under those conditions, XRP and other large-cap altcoins have experienced sharper percentage declines as leverage unwinds across the market.
The bearish outlook would begin to weaken if XRP reclaims the $1.085-$1.11 resistance band and breaks above the descending channel, potentially forcing short sellers to cover positions clustered near $1.09.
Failure to defend the $1.045 liquidity zone, however, could expose the psychologically important $1.00 level, while a decisive break below that support would strengthen the case for a deeper decline toward the $0.97 Murrey support and potentially the $0.75 area highlighted by Altcoin Sherpa.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
