The XRP price has slipped below the $1.40 threshold, marking a significant shift. This level, which had been maintained for several weeks, eventually gave way to a rapid decline. The implications of this move are substantial, as the breakdown of support on high volume typically leads to a transformation into resistance, thereby altering trader positioning. Several factors have contributed to this development, including Bitcoin's rising dominance, which has reached nearly 60% and signaled a rotation of capital away from alternative cryptocurrencies, thus limiting demand for XRP.
Furthermore, XRP has been unwinding after an extended consolidation phase, with the recent move representing the first decisive break below its range floor. Key points to consider include the price drop from $1.40 to $1.38, driven by a notable spike in selling activity, and the current consolidation below $1.40.
Technically, the structure has shifted, with $1.40 now acting as resistance unless it is reclaimed. The expansion of volume into the move confirms genuine selling pressure, rather than a decline due to low liquidity. The longer-term consolidation has started to resolve lower, with short-term rebounds being shallow, indicating a lack of strength from buyers. Traders should closely watch the $1.40 level, as a move above it would signal a failed breakdown.
Additionally, $1.37 is the next support level, and losing it could pave the way for a decline toward $1.32-$1.28. As long as the price remains below $1.40, rallies are likely to encounter selling pressure.