The $1.40 threshold has finally been breached by XRP, with the manner of the breakdown holding greater significance than the move itself. This was not a gradual decline but a high-volume push that cleared a level buyers had fiercely defended for weeks. Once such support is lost, it rarely recovers swiftly; instead, it tends to reverse, which is the current challenge. Key factors influencing this move include Bitcoin's push towards 60% dominance, signaling a rotation away from altcoins and thereby limiting demand for XRP.
The multi-month triangular structure, which had been constraining price movements, has resolved with a downward break, contrary to expectations of an upside surge. In terms of price action, XRP plummeted 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 $1.39–$1.40 range. Technically, the significant 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 triangular pattern lower removes the compression support that had held price for weeks, and while short-term rebounds are evident, they lack the strength to reverse the move. For traders, the key points to watch include the $1.40 pivot; reclaiming this level with volume could make the breakdown appear as a false move.
The next downside level 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 met with selling pressure.