XRP Price News: Risks of a 12% Drop as Market Retests Key Support

Author: Alejandro Arrieche

Published: March 6, 2026

Key Points

• XRP ETFs have broken a 7-day streak of positive net inflows as the price retests the $1.35 support level.
• Negative momentum is increasing after XRP encountered a sell wall at $1.45.
• A break below the $1.35 support could lead to a potential 12% loss in the near term.

Current Market Performance

XRP has underperformed compared to other major altcoins, such as Solana (SOL) and Ethereum (ETH), recording a 7-day loss of 0.5% while the others have seen gains. The token is currently testing a critical support level at $1.35, which has previously provided a bounce-back point. However, investor interest appears weak, as recent price spikes have not translated into significant gains.

ETF Inflows and Market Sentiment

After a week of positive net inflows totaling around $28 million, XRP ETFs saw a withdrawal of approximately $6 million, indicating a shift in investor sentiment. Despite a slight recovery in the Fear and Greed Index from a low of 5 to 25, the overall market sentiment remains cautious, with many altcoins still struggling year-to-date.

Technical Analysis

The recent sell wall at $1.45 has triggered a retreat in XRP's price, which is now approaching the $1.34 support level. If this level is breached, the price could further decline to $1.27 and potentially $1.21. The Relative Strength Index (RSI) indicates a bearish outlook, with the oscillator above the signal line at 40, suggesting increasing negative momentum.

Trading Signals

Recent trading signals have shown two consecutive sell signals on the hourly chart, reinforcing the bearish sentiment. The selling pressure is expected to intensify, particularly over the weekend when trading volumes are typically lower. Traders are advised to monitor the $1.34 level closely; a bounce back could present a buying opportunity, while a break below this level could signal a short position with a target around $1.27.

Conclusion

In summary, XRP is facing significant selling pressure, with a critical support level at $1.35 being tested. A breach of this level could lead to a notable decline, while a bounce could offer a potential trading opportunity. Investors should remain vigilant and consider market conditions before making trading decisions.