XRP falls to $1.09, tests support near $1.12

XRP dropped to $1.09 on June 5, testing near-term support after a pullback from a May 30 high of $1.364. At 10:14 a.m. ET the token traded around $1.11, close to a recent low of $1.091.

Short-term charts show a downtrend with lower highs and lower lows since late May. Trading volume rose during the latest decline. On the four-hour chart the Relative Strength Index was about 24.5, indicating oversold conditions, and the Moving Average Convergence Divergence remained negative. The 14- and 21-period simple moving averages were near 1.17174 and 1.19137, both above the market price. XRP traded close to the lower Bollinger Band at 1.10638.

The slide below $1.11 refocused attention on a February low at $1.1188. Axel Rudolph, a market analyst at IG, wrote in a June 4 note that the outlook turned more bearish after the token fell below that level and added:

Provided that the February low at $1.1188 holds on a weekly chart closing basis, a recovery may ensue. In this case the February-to-May lows at $1.2663-to-$1.2806 may act as resistance.

Broader market factors cited by analysts included inflation concerns, higher Treasury yields, uncertainty over the path of U.S. interest rates, geopolitical tensions between the United States and Iran, rising oil prices and worries about global growth. Heavy long liquidations also occurred during the sell-off and amplified the decline.

Institutional flows into XRP products continued amid the price weakness. U.S.-listed spot XRP exchange-traded funds recorded about $118 million in net inflows in May, bringing cumulative inflows since their launch to roughly $1.4 billion. Seven spot XRP ETFs manage about $1.2 billion in assets, and XRP-focused funds attracted roughly $35 million between May 20 and May 29 while spot bitcoin and ether ETFs saw combined outflows near $2 billion. Bitcoin ETFs lost $396.6 million over the same period.

Market participants said the near-term outlook will depend on whether XRP can hold current lows and respect the $1.1188 weekly support. Failure to hold those levels could leave further downside more likely, while a recovery above the mid-$1.10s would shift attention to resistance in the $1.26–$1.28 area.