XRP bounces from four-month lows but remains trapped below key resistance
In brief
- XRP gained 1.6% to $1.10 after dropping to $1.09, bouncing from pre-November 2024 breakout lows
- Volume surged to 145.3M XRP with RSI hitting oversold levels matching pre-November readings
- 25M+ XRP left exchanges as ETF products recorded $118M May inflows, totaling $1.4B cumulatively
Volume spike signals capitulation, not conviction
Volume surged to 145.3 million XRP during the 22:00 UTC session, pushing price through resistance near $1.1350. XRP slipped from $1.1488 to $1.1386 before buyers stepped back in near support. The recovery showed buyers are willing to defend the $1.09 area, though follow-through buying remains limited.
The RSI tells the story. The RSI fell to one of its most oversold readings since before the November 2024 rally, suggesting the selloff had run its course mechanically. That's a floor, not a foundation.
Structural pressure persists
XRP remains trapped inside a descending channel despite the bounce. $1.15 remains the first meaningful resistance level and the upper boundary of the current descending channel. $1.13-$1.14 is now the key near-term support zone after the latest recovery.
Analysts increasingly view the $1.10-$1.20 area as a potential stabilization zone. A move above $1.20 would signal the start of real repair work. If support near $1.10 fails again, the psychologically important $1.00 level becomes the next downside target.
Accumulation signals build beneath price
The macro picture is more nuanced. More than 25 million XRP left exchanges in recent days, and XRP-linked ETF products recorded roughly $118 million in inflows during May. Cumulative XRP ETF inflows are approaching $1.4 billion. These flows suggest smart money is accumulating at lower prices, even as retail remains hesitant.
Exchange outflows and ETF inflows continue to point toward accumulation beneath the surface, but price action still resembles a market trying to find a floor rather than one beginning a new uptrend. The gap between on-chain accumulation and price weakness is worth watching—it's often where recoveries are built.
