XRP Price Weekly Outlook: Will Channel Support Floors Contain the Institutional Selloff?
XRP consolidates under $1.34 as the CLARITY Act heads to a June Senate vote. Read our technical analysis, institutional drivers...
Quick overview
- XRP closed June at $1.3289, showing defensive behavior amidst a structured lower descending channel.
- The upcoming Senate vote on the CLARITY Act could provide significant support for XRP's price stability.
- Cumulative net asset inflows into spot XRP ETFs have reached over $1.55B, reducing market float.
- Short-term price action indicates a potential squeeze, with sellers currently controlling momentum.
XRP was very defensive over the weekend. It closed out June at $1.3289, following a modest late-session move that went sideways. The payment digital currency is currently within a very structured lower descending channel on the 2-hour chart as tight fundamentals in the network continue to collide against outflows throughout the rest of the altcoins.
Things To Watch This Week
- June Senate Vote on CLARITY: The Digital Asset Market Clarity Act (aka: CLARITY) is due to go to a full vote in June. The CLARITY Act is already out of the Senate Banking Committee and bipartisan, which means it will be a major tailwind that protects the price. Many institutions also want the asset to have this legal commodity status.
- $1.55B ETF inflow: Capital inflows into the spot XRP ETFs have kept a steady pace during May. The inflows through the end of the month have pushed cumulative net asset inflows to $1.55B+, and this is helping reduce the amount of float in the market.
- RLUSD on-chain growth: There is still lots of utility on the ledger. Ripple’s native stablecoin RLUSD is expanding usage across payments for institutions and corporations, driving transactional velocity across the network.
XRP Price Technical Analysis
On the 2-hour timeframe, the asset is in a descending channel that is very structured. We have seen lower lows and lower highs form during this channel from the $1.4100 high. Currently, price is sitting near the midline, right under the $1.3400 to $1.3500 supply block, while buyers defend the support block at the low of the range.
The moving averages continue to push the price down, though there are still buyers who are keeping price at $1.3137 to $1.3200. The 14 RSI is currently at 50 and we have room to continue downwards.
- Resistance: $1.3400, $1.3500 (Immediate), $1.4100 (Major)
- Support: $1.3200 (Immediate), $1.3137 (Channel), $1.2500
XRP Trade
- Short on a candle close under $1.3200
- Targets: $1.3137 and $1.2500
- Stop Loss: Above $1.3400
XRP Price Forecast Conclusion
This is how we have to look at XRP right now. Short term, price is in a squeeze and we need to test if buyers step in ahead of CLARITY. Many have been waiting for this resolution.
Long term, the end of SEC litigation and ETFs will support the trend. Right now, we have sellers in control of the momentum and we are keeping an eye on the market open Monday.
We may trade a little more if there is a gap down and the range breaks support. Otherwise, we remain watchful until there is a clear break to the upside.
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