XRP Price Dilemma: The $1.28 Support Line Under Threat!

Individuals holding XRP (CRYPTO: XRP) since last summer have faced significant challenges. After hitting a peak price of $3.65 in July 2025, the token has steadily fallen and is now valued at around $1.37, approximately 63% lower than its peak. Additionally, this past week saw XRP erase gains achieved after the CLARITY Act received approval from a Senate committee on May 14.

The downturn has placed XRP’s value back into the $1.30s, with critical support located just beneath at $1.28. This support level is essential for preventing a more significant decline. What happens if XRP slips below $1.28?

The Importance of the $1.28 Support Level for XRP

Throughout most of 2026, XRP has remained trapped within a range, oscillating between $1.30 and $1.50 but facing downward resistance whenever it attempts to surpass the upper limit. The 50-day moving average is positioned above the current price, around $1.46, indicating that prior support is now acting as resistance, further asserting the bears’ control.

A significant support level is set at $1.28. In late February, XRP dropped to $1.11 amid a falling market intensified by the Iran conflict, but buyers have consistently defended the $1.28 level during subsequent downturns. This level also aligns with the 23.6% Fibonacci retracement, a point that traders closely monitor during downtrends.

Currently, XRP is trading about 7% above the $1.28 support level. The challenge is that repeated testing of this support weakens it over time, suggesting that the next test could potentially break through.

Potential Drop for XRP if $1.28 Support Falls

A break below $1.28 would see XRP likely descend through several support levels, with the chart outlining potential declines.

The immediate target would be $1.18. Since late 2024, XRP has formed a descending triangle, with each successive high being lower than the last as the token follows a downward trend. Should $1.28 break, $1.18 becomes the next focus, approximately 14% lower than current trading levels. Once the $1.28 barrier fails, momentum traders may enter the market alongside automated selling, causing a rapid decline.

Next in line would be $1.11, a level that should concern holders the most. XRP reached this low in late February, and its importance stems from the prior circumstance. Back in October 2025, the token plummeted from $2.83 to around $1.53 in a day, which was perceived as a critical low at the time.

However, in February, XRP fell straight through $1.53 to hit $1.11. Therefore, a decrease below $1.11 would not only set a new yearly low but also indicate more profound selling pressure than what occurred in the October crash.

Should XRP drop below $1.11, the next critical level to monitor is $1.00. The token has not traded below $1.00 since November 2024, shortly after the election rally commenced, and such a level typically requires significant negative events, like a widespread market liquidation or an exchange crisis, to breach. If XRP slips below this mark, it would negate all gains made since the election. Additionally, the automated selling triggered under crucial thresholds can accelerate a decline dramatically.

In the worst-case scenario, XRP could potentially fall to $0.80, but this would depend on Bitcoin dropping below $60,000 and a concurrent sell-off in stocks. This would represent a 38% drop from $1.28 and, while it seems unlikely, the price action does leave this door open if buyers continue to abandon their positions above it.

Factors That Could Drive XRP Below $1.28

XRP does not move independently; it closely follows Bitcoin and the overall market conditions—and right now, BTC seems uncertain. Currently priced around $77,440, Bitcoin has dropped 4.3% over the week, while the 30-year Treasury yield has surpassed 5.1%, reaching its highest level in a year.

When yields increase like this, funds tend to flow away from higher-risk assets like cryptocurrencies. XRP and Bitcoin have historically correlated about 75% of the time, so if BTC drops below $75,000 in the coming days, XRP would lose significant support from the overall market.

A significant blow this week came from Goldman Sachs. The bank’s recent SEC filing revealed it had divested its entire $154 million stake in XRP ETFs, the largest known institutional investment in those funds. Goldman also disposed of its Solana ETF holdings and significantly reduced its Ethereum investments by 70%, while maintaining its $700 million Bitcoin position. When a prominent firm like Goldman Sachs exits XRP but keeps holding Bitcoin, it raises eyebrows among other institutions.

One potential catalyst for a turnaround is the CLARITY Act, which would establish XRP’s status as a commodity in federal law. The bill successfully passed through the Senate committee on May 14, but it still requires 60 votes in the full Senate, with expectations for a vote in June or July.

Looking Ahead: The Future of XRP Pricing

The situation ultimately hinges on a contest between two price levels. While XRP remains above $1.28, it can continue to oscillate within the $1.30 to $1.50 range as the market anticipates the outcome of the CLARITY Act.

A crucial level on the upside is $1.50, which is the peak of recent trading ranges and has consistently halted upward movements since February. Every time XRP has reached this threshold, it has fallen short. Therefore, a decisive close above $1.50 could indicate that bearish pressure is weakening, potentially leading to a price rally towards the $1.60 to $1.80 range.

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