XRP price falls as sellers dominate in cryptocurrency market
June 2, 2026
XRP, a cryptocurrency known as Ripple, saw a significant decline of 6.4% over a 24-hour period, dropping to $1.21 on Tuesday. This downturn closely followed a broader sell-off in the crypto market, largely influenced by Bitcoin’s weakening performance. Analysts in the crypto space attributed the rapid price drop to a technical breach below the crucial support level of $1.30. Bitcoin, on the other hand, was trading at $67,000 on Tuesday amidst institutional selling pressure stemming from spot ETFs.
The decline in XRP’s value reflects a broader risk-averse sentiment in the crypto sphere. Bitcoin’s 5.77% drop to $67,227.98 had a cascading effect, pulling down other major altcoins with it. Experts linked this market downturn to a loss of confidence following MicroStrategy’s first Bitcoin sale in four years. With the total market capitalization down by 4.66%, XRP emerged as a high-beta satellite to Bitcoin’s movement. The XRP price broke below the psychologically significant $1.30 support level on a high trading volume of 96.26 million on June 1, invalidating a previous consolidation pattern.
From a technical analysis standpoint, momentum indicators have shown that XRP is deeply oversold. The 14-day Relative Strength Index (RSI) stands at 27.55, indicating that selling pressure may be nearing exhaustion. While the breakdown in market structure signals a bearish trend, the oversold technical signal suggests a potential for a short-term rebound or period of consolidation. Technical analysis of XRP’s price movement suggests that the immediate trend remains bearish below the resistance cluster of $1.26–$1.28. The next crucial support level is projected to be in the $1.20–$1.22 range, aligning with the yearly low recorded back in February.
One key event to monitor is the upcoming Ripple escrow unlock scheduled for July 1. Additionally, the significant XRP ETF inflows of $118.29 million in May indicate underlying institutional demand for the cryptocurrency. Despite sellers currently dominating the market, there are signs that it is searching for a bottom around multi-month support levels. A potential relief rally could be signaled by a daily close above $1.28.
While the oversold conditions might slow down the descent in XRP’s price, the prevailing path of least resistance seems to be downward until key resistance levels are reclaimed. It remains to be seen how the market will navigate through these turbulent times and whether XRP can regain its footing amidst the broader crypto sell-off.
