XRP slides toward $1.10 support as $1.7B liquidation wave hits crypto

XRP dropped 33% year-to-date and is testing a critical support level that has held for six years.

XRP fell to $1.15 after a wave of forced liquidations wiped out more than $1.7 billion in leveraged positions across digital assets on June 3-4, according to Coinglass data. The token has now lost a third of its value since the start of 2026.

According to Coinglass data, XRP exchange-traded funds recorded a $5 million outflow on Wednesday, breaking a 21-day streak of net inflows. The funds still hold about $1 billion in net assets with $1.4 billion in cumulative inflows, suggesting longer-term institutional buyers continue accumulating even as short-term traders exit positions.

Trading volumes surged 56% to $3.4 billion in the past 24 hours, representing about 4.4% of the token's circulating market cap. The Crypto Fear and Greed Index dropped to 19, near Extreme Fear territory. Bitcoin also fell below $62,000 before recovering near $64,000, adding to selling pressure across altcoins. The broader risk-off move was driven by stalled US-Iran nuclear negotiations and President Donald Trump's threat to raise tariffs on 60 countries.

If the $1.10 support level fails to hold, XRP could decline toward the $0.80 zone, a 27% drop from current levels. A daily close below $1.10 would invalidate a historical bullish setup where the Relative Strength Index has previously preceded strong rallies after dipping below 30.

$1.10 Support Becomes Line in the Sand

The $1.10 level has acted as a cycle low for XRP throughout the current market phase. The Relative Strength Index on the weekly chart dropped below 30, an oversold condition that preceded rallies of 208% to 1,480% in the three prior instances. However, the MACD lines remain in negative territory, and the broader liquidation-driven selling pressure has kept price action fragile. If the $1.10 support holds, XRP could target the first resistance at $1.36, with an extended rally allowing a move toward the May high of $1.55. A break above that level would open the path toward $3.50 in the medium term, according to technical analysts tracking the pattern.

ETF Flows Show Divergence Between Short-Term and Long-Term Investors

The $5 million outflow from XRP ETFs broke a 21-day inflow streak, but the divergence between net assets ($1 billion) and cumulative inflows ($1.4 billion) indicates that while short-term traders are exiting, institutional capital continues to accumulate exposure. This pattern has historically preceded sustained recoveries when broader market conditions stabilize. The question for XRP holders is whether the $1.10 support can hold long enough for the macro environment to turn favorable again. With the Fear and Greed Index at 19, sentiment is approaching levels that have historically marked market bottoms for major altcoins.

This article is for informational purposes only and does not constitute investment advice.