The $1.40 level has been breached for XRP, with the manner of the breakdown being more significant than the move itself. This was not a gradual decline but rather a high-volume surge that cleared a level that buyers had protected for several weeks. Once such support is lost, it typically does not recover quickly and instead flips, which is the current test. Several key factors have contributed to this scenario, including Bitcoin's dominance nearing 60%, which reinforces a shift away from altcoins and limits demand for XRP.
The multi-month triangle structure that had been constraining price has finally resolved, with the move breaking lower rather than triggering the anticipated upside expansion. In terms of price action, XRP dropped from $1.44 to $1.39, cleanly breaking through the $1.40 support zone, driven by a sharp increase in participation rather than thin liquidity. Currently, the price is stabilizing just below the breakdown level, trading within a tight range of $1.39–$1.40.
From a technical standpoint, the key shift is structural, with $1.40 transitioning from support to resistance unless it is quickly reclaimed. The expanding volume into the breakdown confirms genuine selling pressure, not merely positioning noise. The triangle pattern that held the price for weeks has resolved lower, removing the compression support. While short-term bounces are appearing, they are reactive and not strong enough to reverse the move yet.
For traders, $1.40 is now the pivotal point. If this level is reclaimed with volume, the breakdown may appear as a fakeout. The next downside level to watch is $1.37, and losing this could pave the way towards deeper support near $1.31. If the price continues to hold below $1.40, sellers will remain in control, and rallies are likely to be sold.