XRP Falls Below Key $1.18 Support, Raising Risk of Drop Under $1

XRP has fallen below $1.18, a key support level, putting the market's focus on whether it can hold above $1.

U.Today reported on June 6 that XRP fell as low as $1.05 during the session, its lowest level in months. The token has declined for six straight trading days since reaching $1.36 on May 30.

About $4 million of fresh money recently flowed into spot XRP exchange-traded funds, bringing cumulative net inflows close to $1.5 billion. Even so, investor sentiment has yet to recover. XRP has also slipped to sixth place by market capitalization, behind Circle's USDC dollar-pegged stablecoin.

The market is also watching signs that XRP has entered oversold territory. Its weekly relative strength index has fallen to levels previously seen near major cycle bottoms, the report said. Still, oversold conditions can persist for an extended period during a selloff accompanied by forced liquidations.

The most important price level is $1.18. The zone coincides with the 200-week moving average and has served as a key support level for XRP since November last year. Aside from the sharp selloff in October last year, the token traded above that range most of the time.

With XRP falling back below $1.18, attention is shifting to the next support level at $0.92. If it drops to $0.92, XRP could trade below $1 again.

If XRP reclaims $1.18, a short-term rebound remains possible. The market is looking at $1.60 and $2 as the next major resistance levels. Until the token recovers its former support, however, the bearish trend is likely to persist.