"ETFs couldn't stop the crash"...XRP has no hope if it fails to recover $1.4

▲ XRP/AI Generated Image

As tensions in the Strait of Hormuz escalated again, XRP lost its $1.30 support level. As a result, the market is rapidly tilting into a bearish zone, with discussions even mentioning the possibility of a fall to $0.75.

According to crypto media outlet U.Today on May 28 (local time), XRP failed to maintain its May upward momentum amid renewed tensions near the Strait of Hormuz and Bitcoin (BTC) falling below $73,000. As funds moved to defensive assets, buying sentiment across risk assets weakened, pushing XRP below its key support level of $1.30.

Technical risks also increased. Renowned analyst Aksel Kibar diagnosed that XRP, after a prolonged period of sideways trading below the key resistance level of $1.60, has transitioned into a bearish continuation pattern. With widespread fear in the market, the failure of buying pressure to break $1.60 has opened the way for selling pressure to move towards the long-term technical target of $0.75, according to the analysis.

Retail investor sell-offs also increased downward pressure. According to Santiment data, the market value to realized value metric fell to its lowest level since 2020 this week. This indicates a panic selling trend where investors are selling at a loss. As market sentiment cooled sharply, XRP's technical rebound basis also weakened.

Funds flowing into XRP spot ETFs were also not enough to defend the price. While net inflows into XRP spot ETFs exceeded $118 million in May, the inflows failed to stop the selling pressure. Macroeconomic instability coupled with risk-aversion sentiment also weakened institutional investor optimism for XRP.

To invalidate Kibar's bearish scenario, buying pressure must urgently push XRP back above $1.40. Failure to recover $1.40 could mean that the break below $1.30 is not just a short-term correction but could lead to further downward pressure towards $0.75.

*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.*