Ripple's Supply Bomb Looms…XRP Market Fear Intensifies Again

▲ Ripple (XRP) ©

XRP (Ripple) is once again facing downward pressure amid the collapse of a key support level and concerns over a large-scale supply release. As the technical bearish trend strengthens, Ripple's monthly escrow release is increasing short-term supply burden, unsettling investor sentiment.

According to cryptocurrency market data aggregator CoinMarketCap, as of June 1 (local time), XRP traded at $1.32, down 1.83% over the past 24 hours. The media cited the collapse of the key Fibonacci retracement support level at $1.33 and the absence of clear upward catalysts as reasons for XRP's weakness. In particular, the Relative Strength Index (RSI) maintaining a bearish trend at 41-43 suggests that selling pressure has not yet subsided.

Technically, the breach of the $1.33 support level, which is the 78.6% Fibonacci retracement zone, exacerbated market anxiety. During the same period, trading volume increased by 17.49% to $1.41 billion, indicating that selling pressure indeed intensified during the decline. The media assessed that XRP's failure to defend its high has opened up the possibility of further declines. Analysis suggests that a recovery to $1.33 is first needed to invalidate the short-term bearish structure.

In the market, Ripple's monthly escrow release schedule is also attracting attention as a burden factor. Ripple is set to release 1 billion XRP into the market through an escrow release scheduled for June 1. While this is a recurring monthly event, it is assessed that it could stimulate concerns about increased supply in the short term, thereby increasing volatility. However, the media explained that past cases show a significant portion of the released supply is often re-deposited, limiting the actual market impact.

The key short-term variable is whether the $1.30 support level can be defended. If XRP maintains above this level, a rebound attempt to $1.37 may be possible. Conversely, if it falls below $1.30, there is a possibility that downward pressure could extend to the next major support zone of $1.25-$1.27. The media analyzed that the current market is continuing a cautious sideways trend without finding a clear direction.

However, recent on-chain data also shows some accumulation trends. The media assessed that the recent strong on-chain accumulation movements could partially support the lower end of the XRP price. Ultimately, whether XRP succeeds in defending $1.30 over the next 24-48 hours, or whether the escrow release acts as a catalyst for further decline, is emerging as a key variable determining the short-term market direction.

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