XRP tumbled beneath the key $1.30 support level on Tuesday, reaching its lowest point in 15 weeks as a broad cryptocurrency sell-off intensified following bitcoin's decline. The digital asset traded around $1.26, with traders now focusing on the next support zone near $1.2650-$1.2670. If selling pressure continues, the $1.20 level becomes the next target, according to market observers.
The sell-off was triggered by bitcoin sliding under the $70,000 threshold, touching $69,648. Other major tokens also retreated, with ether holding just below $2,000 and Solana falling to approximately $79.66. The broader market weakness has put pressure on altcoins, including XRP, which has been forming a series of lower highs and lower lows.
Record Exchange Flows
Exchange data revealed significant activity in XRP tokens. On Tuesday, 22.80 million XRP flowed into centralized exchanges, marking the largest single-day net inflow of 2026. This influx is often interpreted as a sign of potential selling, as tokens become easier to offload once on an exchange. However, the flows quickly reversed, with 25.24 million XRP exiting exchanges shortly after, the year's biggest daily net outflow. These withdrawals may indicate that holders are moving coins into custody or storing them, though they have not yet led to sustained price gains.
Institutional Flows Show Divergence
Institutional investment products experienced significant outflows last week. According to CoinShares, digital-asset funds saw $1.67 billion in net outflows, marking the third consecutive week of withdrawals and the second-largest single-week outflow of 2026. Bitcoin funds accounted for $1.44 billion of the outflows, while ether products lost $257 million. In contrast, XRP funds bucked the trend, attracting $20.3 million in inflows.
James Butterfill, head of research at CoinShares, attributed the outflows to "Iran-related risk-off" sentiment, which has outweighed any positive expectations from progress on the CLARITY Act, a U.S. crypto-market bill. The selling pressure has been particularly acute for U.S. spot bitcoin ETFs, which are on their longest losing streak since their launch in January 2024, with 11 straight sessions of outflows totaling approximately $3.45 billion.
Bitcoin Catalyst: Strategy Inc. Sale
Bitcoin's decline was partly influenced by news that Strategy Inc., the largest public holder of bitcoin, sold 32 bitcoin for $2.5 million between May 26 and May 31, at an average price of $77,135 each. The sale, disclosed in an SEC filing, was intended to fund preferred-stock payouts. While the amount was small relative to Strategy's total holdings of 843,706 bitcoin, it added to market jitters amid low buying interest.
TD Cowen analyst Lance Vitanza described the sale as "economically immaterial" and said it left the firm's "core accumulation thesis" intact. Benchmark's Mark Palmer suggested that the company's bitcoin holdings could now serve as a "viable backstop" for preferred dividends.
Outlook
For XRP, the near-term outlook hinges on broader crypto market sentiment. A sustained break above $1.30 would improve the short-term chart, but a failure to hold support at $1.26 could send the token back toward $1.20. The divergence between XRP's exchange outflows and price action highlights the challenge bulls face: even positive flow data may not matter if wider demand continues to wane.
