RIpple-linked token steadies above $1.10 from four-month lows

XRP has experienced a turbulent period recently, with one of its most significant selloffs of the year followed by a modest recovery. While the token has managed to bounce back from levels not seen since the November 2024 breakout, the overall trend seems to be more about stabilization rather than a complete reversal.

In recent days, over 25 million XRP has been withdrawn from exchanges, indicating a potential accumulation phase rather than immediate selling. Additionally, XRP-linked ETF products have been attracting capital, with around $118 million in inflows recorded in May alone, bringing cumulative inflows to nearly $1.4 billion. Analysts and forecasting models are increasingly eyeing the $1.10-$1.20 range as a potential stabilization zone following XRP’s recent 17% weekly decline.

In terms of price action, XRP has managed to gain 1.6% in the latest session, recovering from lows near $1.09 and edging closer to $1.14. The most significant move occurred during the 22:00 UTC session, with volume surging to 145.3 million XRP and pushing the price past resistance near $1.1350. However, momentum waned towards the end of the session, causing XRP to dip slightly before finding support.

From a technical analysis perspective, XRP remains within a descending channel despite the recent bounce. While the recovery has alleviated immediate downside pressure, the pattern of lower highs persists. The RSI indicator is signaling oversold conditions, suggesting that selling pressure may be waning. Exchange outflows and ETF inflows indicate accumulation behind the scenes, but the price action reflects a market still searching for a solid footing.

The bounce from $1.09 is significant as it demonstrates buyer interest in defending that level. However, sustained buying momentum is still lacking. Key levels to watch for traders include $1.13-$1.14 as near-term support, $1.15 as the initial resistance level and upper boundary of the descending channel, and a breakthrough above $1.20 as a signal of potential recovery from the recent selloff. Should support near $1.10 falter, attention may turn to the psychologically important $1.00 level as the next downside target.

Overall, XRP’s recent price movements suggest a delicate balance between buyers and sellers, with the token caught between oversold conditions and ongoing market de-risking. Traders will need to closely monitor key levels and indicators to gauge the direction of XRP in the coming days.