XRP Price Drops as Long-Term Chart Pattern Breaks “For the First Time in Three Years”
XRP (XRP-USD) is experiencing a sharp decline as its value slides below key long-term market levels. Analyst Damian Chmiel noted that an important line on the price chart broke “for the first time in three years” during a steep June selloff.
This structural breakdown has shifted XRP’s overall momentum into a negative phase. Many crypto traders are now preparing for deeper losses if the asset fails to hold its current ground.
Technical Breakdowns Cause Bigger XRP Price Drops
XRP recently closed the month of June at $1.04, marking a swift 22% loss. This slide pushed the digital asset below a steady $1.26 price floor that had successfully stopped every decline since 2023.
XRP’s price also fell beneath its 50-month moving average line, which had acted as a safety net for several years. This double breakdown means the market structure is favoring sellers right now.
If XRP’s price drops below the psychological $1.00 mark, analysts warn that a much larger retreat could happen. The next stop for the asset could be a drop of 35% down to $0.67. If the selling accelerates, the price could plummet 55% to $0.47 or even hit a multi-year floor near $0.29.
Institutional Sales Hurt XRP Investor Confidence
XRP’s downward move affected the entire crypto market, causing a big pullback across all major tokens. Bitcoin (BTC-USD) dropped by about 20% in June, which drained cash out of alternative digital assets.
Furthermore, corporate actions created extra selling pressure across the crypto sector. In fact, Strategy (MSTR) confirmed it sold roughly $216 million worth of Bitcoin, despite previously harping on about its “never sell” rule.
Paul Howard, a senior director at Wincent, explained that such large corporate sales often cause other investors to reduce their risk. This activity signals caution to the broader market for the coming months.
Delayed Regulations Remove XRP’s Positive Catalyst
Political hurdles are also slowing down any potential price bounce. A vote on the CLARITY Act, a bill that would formally classify the token as a commodity under U.S. law, has been delayed.
The U.S. Senate left for recess before holding the vote, pushing the timeline into late July or early August. This delay removed a major positive news event that buyers were counting on to reverse the trend.
Instead of a fast recovery, XRP must now rely on global economic trends and general market liquidity. Until XRP’s price can climb back above the old $1.26 resistance level, the overall outlook remains stuck in a downward phase.
At the time of writing, XRP’s price is sitting at $1.13.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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