Despite recent positive supply data for XRP, the price continues to show weakness. While exchange balances of XRP are declining and capital flows into crypto investment products remain positive, the market has yet to respond as optimistically as expected. This week’s break below a critical support level suggests that short-term technical selling is outweighing longer-term accumulation.
Supply drops, but price retreats
Data shows that over 25 million XRP have been withdrawn from exchanges in recent days. Typically, such a development would support prices by reducing readily available supply. Additionally, inflows of XRP to Binance have hit their lowest levels since 2026—an indicator that selling pressure might be easing.
Yet, despite these developments, XRP declined by over 5 percent in the last 24 hours, falling from $1.2712 to $1.2026. The sharpest drop occurred during the June 2, 14:00 UTC session, when trading volume surged to $205.7 million and the price slipped below the critical $1.25 support line.
The market’s muted reaction to XRP’s positive supply data indicates that price action has overtaken fundamental indicators as the dominant force. Such divergences tend to appear more frequently in the later stages of a downtrend.
$1.25 now acts as resistance
With the breakdown of the $1.25 support, this level has now turned into resistance. This signifies that any potential rebounds could face renewed selling pressure near this zone. After the initial drop, XRP sank as low as $1.1858, but managed a limited recovery toward the close, stabilizing near $1.20.
The bounce from just below $1.19 suggested that short-term selling momentum may be easing. However, lackluster buying following this move indicated that any rebound does not yet rest on solid footing.
Critical price zones on the chart
Technically, XRP continues to trade within a broad descending pattern. The formation of lower highs remains a key indicator that the broader trend is still downward.
On the charts, the $1.20 to $1.21 range emerges as the most significant short-term support zone. If this area gives way, the $1.13 to $1.15 range is likely to come into focus. On the upside, the $1.25 threshold will be the first resistance level for any recovery attempts.
The market stuck between opposing signals
Overall, the market appears caught between declining exchange balances and deteriorating price action. Notably, nearly $1.42 billion in spot ETF inflows entered crypto investment products during the review period, which shows that risk appetite has not entirely vanished. Nevertheless, this capital inflow has not provided direct support to XRP’s price so far.
In the short term, analysts believe investors may remain cautious. The recent contraction in supply alone has not been sufficient, as price dynamics currently indicate that technical pressure is the more decisive factor for XRP’s movements.
