XRP, Unstable Despite $1.3 Billion Trading Volume... Warning: "If it Fails to Recover $1.35, it Will Fall Further"

▲ XRP, Cryptocurrency Wallet/AI Generated Image

XRP has slipped into the $1.32 low range, failing to break its 24-hour high of $1.35, entering a phase where absorption of selling pressure and confirmation of support lines are needed before a short-term rebound.

According to CoinMarketCap's real-time chart on June 1st, XRP fell by 1.05% over 24 hours to around $1.32. The 24-hour low was recorded at $1.32, and the high at $1.35. The price movement, confined within a $0.03 range during the day, indicates a stagnant phase where buying pressure isn't strong enough to create an immediate trend reversal, nor is selling pressure explosive enough to amplify a sharp decline.

Its market capitalization remained at $81,953,901,493, maintaining its 5th position on CoinMarketCap. Although the price showed weakness, the fact that its market cap ranking was maintained suggests that the status of a major altcoin itself has not been shaken. However, the 24-hour trading volume was only $1,302,720,007, and the market cap to trading volume ratio was just 1.58%. This signals that strong trading rotation, capable of increasing short-term volatility, has not yet occurred.

The key on the chart is whether the $1.32 support holds. The fact that XRP is trading at the same price as its 24-hour low means that its bottom defense is immediately being tested. If the $1.32 level is maintained, an attempt to re-break $1.35 is possible, but if this level is lost, short-term selling pressure could drag the price down further. The current trend is closer to confirming the bottom rather than resuming an uptrend.

Supply indicators are also a factor pressuring investor sentiment. XRP's circulating supply is 61,977,843,307 XRP, and its maximum supply is 100,000,000,000 XRP. The fully diluted valuation is estimated at $132.23 billion. As a significant amount of circulating supply is already released into the market, a short-term price rebound requires both increased trading volume and an influx of buying at the lows.

Long-term price pressure also remains. XRP's all-time high was $3.84, recorded on January 4, 2018, and the current price is 65.58% lower than that peak. In contrast, compared to its all-time low of $0.002802, it is 47,085.74% higher. While short-term charts reveal bearish pressure, on a long-term basis, it still maintains a higher valuation compared to its past lows.

Currently, the XRP market situation is focused more on defending the $1.32 support level and breaking through the $1.35 resistance level, rather than a clear trend reversal. While trading volume remains in the $1.3 billion range, the price is likely to explore direction within a narrow consolidation range. If short-term buying pressure fails to recover $1.35, XRP will continue to test its lower support rather than expecting a rebound for the time being.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*