The $1.40 level has been breached for XRP, and the manner of the breakdown is more significant than the move itself. This was not a gradual decline but a high-volume push that cleared a level buyers had defended for weeks. Once such support is lost, it typically does not recover quickly and often flips, which is the current challenge.
Several factors contributed to this development. Bitcoin's dominance approached 60%, indicating a rotation out of altcoins and limiting demand for XRP.
The multi-month triangle structure that had been compressing the price finally resolved with a move to the downside, contrary to expectations of an upside expansion. Key points from the price action include a drop from $1.44 to $1.39, with a clean break through the $1.40 support zone, driven by a sharp increase in participation rather than thin liquidity.
The price is now stabilizing just below the breakdown level, trading within a tight $1.39–$1.40 range. From a technical analysis perspective, the crucial shift is structural, with $1.40 transitioning from support to resistance unless quickly reclaimed.
The expansion of volume into the breakdown confirms genuine selling pressure rather than mere positioning noise. The resolution of the triangle pattern to the downside removes the compression support that had held the price for weeks. While short-term bounces are occurring, they are reactive and not strong enough to reverse the move yet.
Traders should watch $1.40 as the pivot; reclaiming it with volume could make the breakdown appear as a fakeout. The next downside level is $1.37, and losing that could pave the way for a move toward 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.