XRP’s value has dipped to approximately $1.16, marking a drop of over 3% in a single day. An analyst suggests that a decline towards the $1.03 range may be part of a broader consolidation phase rather than the onset of a steeper downward trend.
Summary
- Analyst The Great Mattsby indicates that XRP may revisit the $1.03 support level without compromising its long-term market integrity.
- XRP continues to trade beneath significant resistance at $1.34, with daily momentum indicators leaning towards bearishness.
- The XRP Ledger is set for its upcoming 3.2.0 upgrade, transitioning from the “rippled” framework to “xrpld.”
As reported by crypto.news, on June 4, XRP (XRP) was trading around $1.16, worsening a pullback that reflects ongoing weakness in the broader cryptocurrency landscape.
During the same time, Bitcoin (BTC) fell briefly below the $62,000 mark, as global growth concerns, high oil prices, and uncertainty regarding the Federal Reserve’s interest rate strategy diminished market risk appetite.
This decline occurs amid preparations for a network upgrade within the XRP Ledger ecosystem. Earlier this week, XRP Ledger Operations announced that version 3.2.0 is on the horizon, signaling a shift from the long-standing “rippled” software name to “xrpld.”
Before the upgrade, infrastructure providers, validators, and node operators will need to make necessary updates to their systems.
In discussing the current price arrangement, crypto analyst The Great Mattsby mentioned that XRP may be nearing a crucial test on higher timeframes.
“At this stage, it would be logical for $XRP to revisit the monthly cloud around 1.03.”
The analyst further noted that those experienced in market dynamics and Ichimoku analysis should not interpret the current setup as bearish on a macro scale, but rather as an extended consolidation period.
Key Support Highlighted by Monthly Ichimoku Cloud at $1.03
The monthly Ichimoku chart shared by The Great Mattsby reveals XRP trading above a significant support zone established by the cloud structure over several years.
A move towards $1.03 could position the token at the top of that support area and might serve as a backtest for a level that previously acted as resistance before the recent rally.
On the daily chart, XRP remains beneath the Supertrend indicator, which is currently around $1.34. This indicator has remained in bearish territory since late May, limiting recovery attempts. For any successful rebound, buyers would likely need to reclaim this level before targeting the $1.45-$1.50 range.
Momentum indicators have also shown signs of weakness. The daily MACD remains below the zero line, with the signal line continuing to trade above it. The histogram bars have also expanded into negative territory, indicating that selling pressure remains prevalent.
Recent movements in derivatives have only reinforced a cautious outlook. Leveraged long positions faced another wave of liquidations during the latest downturn, leading to reduced speculation and contributing to a decrease in price action among major altcoins, including XRP.
A Break Above $1.34 Could Enhance Technical Perspective
Despite the recent slide, several factors continue to bolster the long-term outlook for XRP. The upcoming upgrade to XRP Ledger version 3.2.0 follows the successful deployment of version 3.1.3 in May, which included the fixCleanup3_1_3 amendment and enhanced network reliability following full validator consensus.
Institutional interest in Ripple’s ecosystem has also seen growth in recent months, driven by the expansion of RLUSD and further partnerships. Although these developments have yet to lead to immediate price gains, they have kept XRP in the spotlight during a turbulent market period.
However, downside challenges still loom due to both technical and macroeconomic pressures. A decisive drop below the $1.03 support could undermine the consolidation narrative articulated by Ichimoku analysts and expose XRP to a deeper retracement towards the psychological $1.00 level.
External risks may further intensify this pressure. Rising energy costs, increasing geopolitical tensions, and signs that the Federal Reserve may maintain higher interest rates for an extended period could affect risk assets, curtailing demand for cryptocurrencies.
For now, traders seem focused on whether XRP can maintain stability above the monthly cloud support. While a decline towards $1.03 would signify another step down from current values, advocates of a bullish long-term view contend that such a movement would align with XRP’s existing macro structure unless this support level ultimately fails.
Disclosure: This article does not constitute investment advice. The content and materials on this page are intended solely for educational purposes.