XRP Plummets to Multi-Month Lows Amid Liquidation-Driven Sell-Off
By John Nada·Jun 5, 2026·3 min read
XRP fell to multi-month lows as liquidation-driven sell-off overwhelmed support levels. Market sentiment hit 'extreme fear' amid macro uncertainty.
XRP lost another 5% as it tumbled toward $1.10, leaving traders scrambling to assess whether this marks a capitulation or the prelude to a deeper descent. According to CoinDesk, the sell-off, accompanied by high volume, shattered previous support near $1.20, pushing the token to its weakest levels in months.
Volume soared to 268.2 million XRP during the turbulent June 5 session, accelerating the breakdown and sparking fears of sustained bearish momentum. The digital asset briefly sank to as low as $1.09 before dip buyers hesitantly emerged near that mark, CoinDesk reported.
Adding to the tumult, XRP ETFs recorded about $4 million in inflows after experiencing their first daily outflow in three weeks, bringing cumulative inflows to approximately $1.5 billion. Yet, the broader market sentiment has soured, with the Fear & Greed Index slipping into extreme fear territory amid wider macroeconomic uncertainty.
The sharp slide also saw XRP slip behind USDC in market capitalization, dropping its value under $75 billion. This shift underscores the challenges XRP faces amidst an increasingly competitive and volatile market landscape.
Technically, support levels are flipping into resistance zones, a pattern that investors know too well. "Markets can stay oversold for longer than traders expect, especially during liquidation-driven declines," the report noted. A failed attempt to rally towards $1.133 saw prices reversed sharply before finding temporary respite near $1.10.
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The current $1.09-$1.10 region is pivotal. Losing this support could pivot focus towards the $0.92 area, a development several analysts have flagged as critical. For XRP to regain bullish momentum, it must surpass recovery zones of $1.12-$1.13 and reclaim former supports, not just bounce from oversold levels.
Still, despite the odds, traders are looking for stronger buying volume on rebounds to suggest a durable bottom, a sign that hasn't yet materialized. The market has not yet delivered the volume on rebounds that traders are hoping for, which could indicate whether the bottom has truly been found.
Furthermore, the broader crypto market has been under pressure, with several headwinds converging over major cryptocurrencies. Bitcoin, for example, recently fell below $60,000 for the first time since October 2024, impacted by factors such as ETF outflows and the prospect of interest rate hikes.
For XRP, the current bearish trend remains a concern until it starts reclaiming former support levels rather than simply bouncing from oversold conditions. The crypto market's reaction to wider macroeconomic uncertainty and the ongoing liquidation-driven sell-off will be crucial for its short-term direction.
Whether this is the bottom or just the beginning of further losses remains the speculative question for XRP and the crypto market at large. Traders will continue to monitor key levels, volume dynamics, and broader market sentiment in the days to come.