The XRP price has slipped below the $1.40 threshold, a level that had been maintained for weeks, and has yet to recover. This shift is significant because when a support level breaks down on strong volume, it often turns into resistance, altering how traders position themselves around it.
Several factors have contributed to this decline. Bitcoin's dominance has surged towards 60%, indicating a rotation of capital away from altcoins and limiting demand for XRP. Furthermore, XRP is unwinding after a prolonged consolidation phase, with the recent move marking the first clean break below its range floor.
In terms of price action, XRP has dropped from $1.40 to $1.38, breaking below a key support level that had held throughout the range. This move was driven by a noticeable spike in selling activity rather than a gradual decline. The price is now consolidating just below $1.40 after the breakdown, rather than rebounding.
From a technical analysis perspective, the structure has shifted, with $1.40 now acting as resistance unless reclaimed. The expansion of volume into the move confirms genuine selling pressure, rather than a drop due to low liquidity. The longer consolidation that kept the price stable has started to resolve lower.
Short-term rebounds have been shallow so far, suggesting that buyers are not yet stepping in with strength. For traders, the key level to watch is $1.40. A move back above this level would signal that the breakdown has failed.
The next support level is $1.37, and losing this could open the path towards $1.32-$1.28. As long as the price remains below $1.40, rallies are likely to face selling pressure.