The $1.40 level, which had held firm for weeks, eventually succumbed to selling pressure, triggering a swift decline that has yet to be reversed. This development is significant, as a support break on strong volume typically morphs into resistance, influencing traders' positioning strategies.
Key factors contributing to this move include Bitcoin's rising dominance, which has reached towards 60%, indicating a shift in capital away from altcoins and reduced demand for XRP. Furthermore, XRP is unwinding from a prolonged consolidation phase, with the recent move marking the first decisive break below its range floor. In terms of price action, XRP plummeted from $1.40 to $1.38, breaching a critical support level that had endured throughout the range.
This move was characterized by a pronounced spike in selling activity rather than a gradual decline. Currently, the price is consolidating just below $1.40, failing to bounce back after the breakdown. From a technical analysis perspective, the structure has indeed shifted, with $1.40 transforming from support to resistance unless reclaimed.
The expansion of volume into the move confirms genuine selling pressure, rather than a drop due to low liquidity. The prolonged consolidation that maintained price stability has begun to resolve lower. Short-term rebounds have been shallow, suggesting buyers are not yet entering the market with strength.
Looking ahead, traders should closely monitor the $1.40 level, as a move above it would signal the breakdown's failure. The next support level is $1.37, and losing that could pave the way for a decline towards $1.32-$1.28.
As long as the price remains below $1.40, rallies are likely to encounter selling pressure.