XRP Drops 7% to Test Key $1.40 Support as Overbought Rally Unwinds
XRP led major token pullbacks with a 7% decline to $1.37 following a rapid 70% expansion to multi-month highs. Derivatives liquidations and cooling momentum triggered the drop, though six consecutive days of ETF inflows signal institutional support remains intact. Bulls now face a decisive test at the $1.40 level to preserve structural upside.
XRP led a market-wide pull-back with a 7% drop down to $1.37 after a massive 70% rally ran into heavy overbought territory. The daily RSI reached an extreme 88 level following the climb to $1.69, triggering a leverage flush that wiped out over $4.6 million in long positions across key trading venues.
Despite the severe price shake-up traders view the move as a needed momentum reset rather than a trend reversal. Institutional demand remains persistent, evidenced by six straight days of net inflows into spot XRP fund products.
The technical battle line is clearly set at $1.40. Losing this critical level opens the door to $1.30, while a clean push back above $1.54 clears the runway toward $1.70.