XRP Faces Downward Pressure as Technicals Signal $1 Test

The sell-off intensified late on June 22, when trading volume hit 65.4 million XRP—an 84% spike above the weekly average. This surge in selling followed a rejection at the upper boundary of a persistent descending channel, a barrier that has stifled recovery attempts since late May. As traders unwound bullish positions, the token slipped through multiple short-term support levels, leaving spot markets exposed to further volatility.

Technical indicators currently favor a bearish outlook. On the 4-hour chart, the asset has breached the 78.6% Fibonacci retracement level at $1.118, shifting focus to the next major downside target of $1.05. A bearish MACD crossover, combined with a Relative Strength Index hovering near 32, underscores the lack of immediate buying pressure. Furthermore, data from CoinGlass reveals that a heavy concentration of short-selling liquidity sits between $1.14 and $1.17, creating a formidable ceiling for any potential rally.

Beyond the charts, broader market sentiment remains fragile. Macroeconomic uncertainty, driven by concerns over inflation and interest rates, has dampened appetite for speculative assets. While institutional interest in XRP-linked products has shown resilience, retail participation and overall network activity have softened. Without a clear move to reclaim the $1.14 resistance zone, the market remains centered on the $1.05 support area, with a deeper slide toward $1 becoming an increasingly plausible scenario for the asset.