XRP has shown signs of recovery after experiencing one of its most significant selloffs this year. The cryptocurrency bounced back from lows not seen since before a notable increase in November 2024, yet it continues to face resistance from sellers, keeping it within a challenging trading range.
In recent days, over 25 million XRP tokens have exited exchanges, a trend that typically indicates accumulation rather than immediate selling. Meanwhile, XRP-linked exchange-traded funds (ETFs) have attracted substantial investment, with inflows of approximately $118 million recorded in May, bringing total inflows to nearly $1.4 billion.
Despite a recent 17% decline over the week, analysts are identifying the $1.10 to $1.20 range as a potential stabilization zone for XRP. During the latest trading session, XRP gained 1.6%, recovering from lows around $1.09 and approaching $1.14. The most significant movement occurred during the 22:00 UTC session, where trading volume surged to 145.3 million XRP, pushing prices through a resistance level near $1.1350.
However, momentum waned as the session closed, with XRP slipping from $1.1488 to $1.1386 before buyers returned near support levels. Despite this bounce, XRP remains within a descending channel, indicating that while immediate selling pressure has eased, the broader trend of lower highs persists.
Technical indicators show that the Relative Strength Index (RSI) has reached one of its most oversold levels since the November 2024 rally, suggesting that selling pressure may be diminishing. While exchange outflows and ETF inflows indicate accumulation, the price action reflects a market still searching for a solid support level rather than signaling the start of a new upward trend.
Traders are advised to monitor the $1.13 to $1.14 range as a crucial near-term support zone. The $1.15 mark stands as the first significant resistance level and the upper limit of the current descending channel. A breakthrough above $1.20 could signal a recovery from the recent downturn. Conversely, if support around $1.10 fails, traders may shift their focus to the psychologically significant $1.00 level as a potential downside target.
XRP has bounced back from four-month lows, showing signs of recovery amid significant ETF inflows. However, it remains trapped below key resistance levels, indicating a market still searching for stability.