XRP is facing renewed selling pressure after a broader cryptocurrency market pullback, but several technical indicators suggest the token’s recovery story may not be over yet.
The cryptocurrency fell nearly 5% over the past 24 hours after a risk-off wave swept through financial markets following the Federal Reserve’s latest policy update. Despite the decline, traders and analysts continue to monitor bullish chart patterns and growing Ripple business developments that could support a future rebound.
XRP Slides After Federal Reserve Decision
The recent decline began after XRP failed to break above the important $1.25 resistance zone.
Following the Federal Reserve’s decision to keep interest rates unchanged between 3.50% and 3.75%, investors reacted cautiously to signals that additional monetary tightening could still occur in 2026. The announcement triggered a selloff across risk assets, including cryptocurrencies.
As a result, XRP dropped from recent highs and reached an intraday low near $1.16 on June 18. Increased selling activity below the $1.20 level also triggered stop-loss orders and liquidations, accelerating the downward move.
Like many other major cryptocurrencies, XRP felt the impact of a market-wide correction driven by concerns about higher interest rates and reduced investor appetite for speculative assets.
Key Support Zone Holds for Now
Despite the recent weakness, XRP continues to hold above a crucial support area between $1.16 and $1.18.
On the four-hour chart, the token remains within a descending channel that developed after its rally toward $1.29 earlier this month. More importantly, XRP is still trading above an ascending trendline that has supported the market since early June.
This support structure remains one of the most important technical levels for traders.
As long as XRP stays above this zone, bulls still have an opportunity to regain momentum and attempt another push higher.
However, a decisive break below $1.16 could expose the next major support level near $1.12 and potentially trigger a deeper correction.
Bullish Divergence Sparks Optimism
One of the strongest arguments for a potential recovery comes from a bullish divergence spotted on XRP’s three-day chart.
Market analyst Gerla highlighted that while XRP has continued to make lower price lows, momentum indicators are beginning to move higher.
This type of divergence often suggests that selling pressure is weakening, even though prices are still declining.
Historically, bullish divergences can appear near major market bottoms and sometimes signal the beginning of a trend reversal.
Although no breakout has been confirmed yet, many traders see this as an encouraging sign that XRP’s downside momentum may be fading.
Falling Wedge Pattern Adds Support
In addition to the bullish divergence, XRP continues to trade within a falling wedge pattern.
Falling wedges are generally considered bullish chart formations because they show that downward momentum is gradually weakening.
As price compresses within the wedge, traders often look for a breakout above resistance to confirm a new upward trend.
For XRP, that confirmation would likely require a move back above the $1.20 level, followed by a stronger push toward $1.26 and $1.29.
A successful breakout could attract fresh buying interest and potentially trigger a larger rally.
Liquidity Clusters Point to $1.30
Derivatives market data provides another reason for optimism.
According to liquidation heatmaps, a significant concentration of leveraged positions sits near the $1.30 level. Additional liquidity pockets are visible around $1.34.
These areas often attract price action because large concentrations of short positions can create conditions for a short squeeze if the market begins moving higher.
Should XRP reclaim key resistance levels, these liquidity zones could become important upside targets.
Many traders are watching the $1.30 area closely as the next major objective if bullish momentum returns.
Ripple Continues Expanding Its Business
Beyond technical analysis, Ripple continues to strengthen its business operations and global presence.
One of the company’s latest moves involved acquiring an equity stake in African fintech giant Flutterwave. The transaction valued Flutterwave at approximately $3.3 billion and gives Ripple exposure to one of Africa’s fastest-growing payments networks.
Although the deal does not currently include a direct commercial partnership, it demonstrates Ripple’s commitment to expanding its footprint in emerging financial markets.
The company has also provided investors with a strong long-term growth target.
Ripple recently stated that it expects to achieve a $1 billion annual revenue run rate by the end of 2026, excluding XRP holdings on its balance sheet.
This projection offers investors another way to evaluate Ripple’s growth beyond short-term XRP price movements.
Macro Risks Remain a Challenge
While technical and fundamental factors offer some support, broader economic conditions continue to create uncertainty.
Investors remain concerned about:
- Higher-for-longer interest rates
- Elevated inflation risks
- Geopolitical tensions
- Energy market volatility
- Reduced appetite for speculative assets
These macroeconomic factors continue to influence cryptocurrency markets and could limit XRP’s upside potential in the near term.
As long as uncertainty remains high, traders may continue favoring caution over aggressive risk-taking.
What Traders Should Watch Next
The immediate focus remains on the $1.16-$1.18 support zone.
If buyers successfully defend this area, attention could quickly shift back toward:
- $1.20 resistance
- $1.23 resistance
- $1.26 resistance
- $1.29 resistance
- $1.30 liquidity cluster
On the downside, losing support near $1.16 would increase the probability of a move toward $1.12 and potentially lower levels.
The next few trading sessions may determine whether XRP’s current pullback is simply a healthy correction within a broader recovery or the beginning of another bearish phase.
Final Thoughts
Although XRP has experienced a sharp decline following the Federal Reserve’s latest policy update, the overall technical picture remains mixed rather than outright bearish.
Bullish divergence signals, strong trendline support, and major liquidity targets above current prices continue to provide reasons for optimism.
At the same time, Ripple’s ongoing business expansion and ambitious revenue goals add a layer of fundamental support that many investors are watching closely.
For now, the battle around the $1.16-$1.18 support zone will likely determine XRP’s next major move. Holding above this area could keep recovery hopes alive, while a breakdown may open the door to deeper losses before the next bullish attempt emerges.
