XRP tests critical trendline as market volatility persists

The recent drop to an intraday low of $1.16 on June 18 followed a failed attempt to breach the $1.25 resistance level. Heavy spot selling triggered cascading liquidations, pulling the asset down alongside the wider crypto market after the Fed maintained rates between 3.50% and 3.75%. Despite this downward pressure, the four-hour chart shows XRP holding within a descending channel, supported by an ascending trendline that has remained intact since early June.

Market analysts are increasingly focused on signs of exhaustion in the selling trend. A bullish divergence on the three-day chart, noted by analyst Gerla, suggests that momentum may be shifting despite lower lows in price. Meanwhile, trader Nebraskangooner pointed to potential accumulation patterns on the daily timeframe, though confirming a trend reversal would require a decisive break above the $1.34 mark. Derivatives data adds to this outlook, with significant liquidation clusters near $1.30 acting as potential targets for a short squeeze if buying pressure returns.

Ripple’s underlying business performance provides a contrasting narrative to the technical volatility. The company recently disclosed an equity stake in African fintech firm Flutterwave and maintains a $1 billion revenue run rate projection for 2026. While these fundamental milestones offer a degree of insulation, macro factors—including geopolitical tensions and persistent inflation concerns—remain the primary catalysts for risk-off behavior. For now, the $1.16 to $1.18 demand zone serves as the definitive line in the sand; a failure to hold this level could expose the June swing low of $1.12, whereas a move back above $1.20 would likely reignite bullish momentum toward the $1.29 range.