Analyst Warns: XRP Could Dip to $1.03 While Staying in Long-Term Bullish Trend

$XRP has dipped to approximately $1.16, experiencing a decline of over 3% within a day. An analyst suggests that this pullback towards the $1.03 range may indicate a phase of consolidation rather than the onset of a significant downtrend.

As reported by crypto.news, the price of $XRP ($XRP) was trading at around $1.16 on June 4, continuing its slide alongside a general downturn in the cryptocurrency market.

During the trading session, Bitcoin (BTC) momentarily fell below the $62,000 mark as risk sentiment weakened due to worries about global economic growth, rising oil prices, and uncertainty regarding the Federal Reserve’s future interest rate adjustments.

This price retreat occurs despite preparations underway for another upgrade within the $XRP Ledger ecosystem. Earlier this week, $XRP Ledger Operations announced that the upcoming version 3.2.0 will transition the software’s name from “rippled” to “xrpld.”

Infrastructure providers, validators, and node operators will need to update their systems in advance of this migration.

Reflecting on the current pricing dynamics, crypto analyst The Great Mattsby pointed out that $XRP may be nearing a crucial technical check on higher timeframes.

“Currently, it would be reasonable for $XRP to retest the monthly cloud around $1.03.”

The analyst further noted that traders well-versed in market dynamics and Ichimoku analysis should interpret this setup as non-bearish from a macro perspective, characterizing the present chart as an extended consolidation phase.

Monthly Ichimoku Cloud Highlights $1.03 as Essential Support

The monthly Ichimoku chart shared by The Great Mattsby indicates that $XRP is trading above a significant support zone formed by the cloud structure over the years.

A move towards $1.03 would place the token within the upper range of that support zone and could function as a backtest for a level that previously served as resistance before the latest surge.

On the daily timeframe, $XRP remains beneath the Supertrend indicator, currently positioned around $1.34. This indicator has consistently remained in bearish territory since late May, limiting recovery efforts. A substantial rebound would likely necessitate buyers reclaiming that level before turning their focus on the $1.45-$1.50 range.

Momentum indicators have also shown signs of weakness. The daily MACD remains below the zero line, while the signal line continues to hover above the MACD line. The histogram bars have expanded into negative territory, indicating that selling pressure is still prevalent.

Recent activity in the derivatives market has added to the cautious outlook. Leveraged long positions experienced another round of liquidations amidst the recent crypto downturn, curtailing speculative exposure and contributing to diminished price movements across key altcoins, including $XRP.

Recovery Above $1.34 Would Enhance Technical Prospects

In spite of the recent declines, several developments continue to bolster the long-term narrative for $XRP. The impending $XRP Ledger 3.2.0 upgrade follows the successful launch of version 3.1.3 in May, which incorporated the fixCleanup3_1_3 amendment to enhance network reliability after achieving full validator consensus.

Institutional adoption of Ripple’s ecosystem has also gained momentum in recent months, driven by the expansion of RLUSD and additional partnerships within its infrastructure. While these developments have yet to translate into immediate price gains, they have kept the spotlight on the $XRP ecosystem amid market volatility.

Risks to the downside persist due to both technical and macroeconomic conditions. A decisive break below the $1.03 support area could undermine the consolidation narrative outlined by Ichimoku analysts and expose $XRP to a more significant pullback towards the psychological support near $1.00.

External factors could also amplify these risks. Rising energy costs, increasing geopolitical tensions, and any signals from the Federal Reserve suggesting prolonged high-interest rates could impact risk assets and dampen demand for cryptocurrencies.

For the time being, traders are particularly focused on whether $XRP can maintain stability above the monthly cloud support zone. Although a drop towards $1.03 would signify another decline from current levels, advocates of a bullish long-term perspective assert that such a move would still align with $XRP’s existing macro structure unless that support ultimately fails.