XRP experienced a decline of 2.6% on Tuesday, settling at $1.14 during London afternoon trading. The digital asset is now hovering near the critical $1.10 support level, a price point that attracted buyers following last week's drop to four-month lows. This movement occurred against a backdrop of broader weakness in the cryptocurrency market, with Bitcoin dipping to around $61,683 and Ether trading near $1,650.
Technical Levels Under Scrutiny
Traders are closely monitoring the $1.13-$1.14 range as immediate support, where recent buying interest has emerged. On the upside, resistance is seen between $1.15 and $1.20, a zone where sellers have historically capped advances. The token remains in a tight trading range, with some signs of accumulation below current levels, though price action has not yet confirmed a reversal.
Data from CoinDesk indicates that more than 25 million XRP tokens were withdrawn from exchanges on Monday, suggesting potential accumulation by investors. Additionally, XRP-linked exchange-traded funds attracted approximately $118 million in net inflows during May, providing some underlying support.
Market Context and Headwinds
The broader cryptocurrency market is facing headwinds from a risk-off sentiment that has also affected U.S. equities. Bitcoin fell 3.8% over the past 24 hours, while Ether, Solana, and XRP each dropped about 2.5%. The decline in XRP appears to be part of a wider pullback from risk assets rather than being driven by Ripple-specific news.
Capital flows remain a concern for the sector. Bernstein analysts, led by Gautam Chhugani, noted that Bitcoin ETF inflows have slowed in 2026 as retail investors pivot toward AI-themed assets. Year-to-date ETF outflows have reached approximately $2.6 billion. The analysts commented that Bitcoin may still offer diversification from the unusual AI-driven momentum markets experienced this year.
Broader Market Pressures
Lekker Capital CIO Quinn Thompson expressed a bearish outlook on cryptocurrencies, citing ongoing concerns about digital-asset treasury positions, Strategy's preferred shares, and quantum-computing risks. Thompson also highlighted that upcoming IPOs from companies like SpaceX, Anthropic, and OpenAI are competing for both capital and investor attention.
Regulatory developments remain in the background. On June 7, a coalition including Stand With Crypto, the Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber sent a letter urging Senate leaders to bring the Clarity Act to a vote. Ripple was among the signatories. The legislation would establish a federal framework for digital-asset markets and registration options, potentially benefiting tokens like XRP over the long term, though it does not address current selling pressures.
Inflation and Macroeconomic Factors
The bounce from the $1.09 low may prove temporary. BlackRock Investment Institute is monitoring the upcoming U.S. Consumer Price Index release on Wednesday for signs that the Middle East energy shock is exacerbating already stubborn inflation. Higher inflation would reduce the likelihood of interest rate cuts, putting additional pressure on speculative assets like cryptocurrencies.
Bitcoin continues to lead the downside, according to traders. Jean-David Péquignot, chief commercial officer at Deribit, noted that if the mid-$50Ks fail to hold, the next support zone is the $48K-$52K range. A break below that level could drag XRP into a broader risk-off trade.
For now, XRP is holding above $1.10, but buyers lack confirmation. Bulls need a move above $1.20 to establish a bullish case. If XRP dips below $1.10 again, last week's low may not represent a washout but rather signal further downside to come.
