XRP Falls Below $1.25 as Crypto Market Faces Major Selloff

Key takeaways

  • XRP has slipped below $1.25 after three consecutive days of losses, reaching its lowest level since February 6.
  • The decline reflects broader selling pressure across crypto markets amid heightened geopolitical tensions.

Ripple’s XRP fell beneath the $1.25 support on Tuesday, extending a three-day losing streak and marking its weakest price point since early February. The drop comes as investors generally move into a risk-off stance amid renewed geopolitical uncertainty in the Middle East.

Although U.S. political commentary has hinted at a possible de-escalation—President Donald Trump suggested a peace deal with Iran could be reached “over the next week”—markets remain cautious. Reports that talks between the two countries resumed after a pause tied to regional hostilities have added to volatility rather than calming sentiment.

Mixed capital flows show continued institutional interest in XRP

Despite the recent price weakness, institutional demand for XRP-related products persists. Digital asset investment vehicles, including U.S.-listed spot exchange-traded funds (ETFs), have continued to record inflows.

CoinShares data show roughly $20 million moved into XRP products in the week ending June 1, placing XRP among a small group of assets with meaningful weekly inflows. At the ETF level, spot XRP funds posted $4.13 million in net inflows last week, extending a five-week streak of positive flows.

SoSoValue reports cumulative inflows to date at about $1.43 billion, with total net assets under management near $1.11 billion. These figures indicate ongoing institutional participation, which provides some underlying support despite the short-term price setback.

XRP technical outlook: bearish pressure builds below key moving averages

Technically, XRP is trading around $1.23 and sits below its important short-, medium-, and long-term moving averages, reinforcing a bearish near-term structure. Momentum indicators corroborate the downside bias: the MACD histogram remains negative while the Relative Strength Index (RSI) is near 37, approaching oversold levels but still signaling persistent selling pressure.

Immediate resistance would emerge around the 50-day EMA near $1.38, with the 100-day EMA around $1.45 as the next hurdle. A more meaningful recovery would require a breakout above a descending trendline near $1.52, while a sustained trend reversal would need XRP to reclaim the 200-day EMA around $1.65.

XRP/USD 4H Chart

While ongoing institutional inflows offer some support, broader macro uncertainty and technical weakness leave XRP vulnerable. With buyers unable to hold the $1.25 level, downside risk could extend toward $1.20 in the near term unless buying interest quickly re-emerges.