XRP Price Outlook…Focus on $1.32 Support and $1.4512 Resistance

▲ XRP/ChatGPT generated image ©

XRP (Ripple) is at a critical inflection point, trapped between the $1.32 support line and the $1.45 resistance line. Despite positive factors such as the progress of the US crypto market structure bill, the CLARITY Act, and inflows into spot ETFs, market analysis suggests that Bitcoin's weakness and technical pressure are hindering XRP's rise.

According to the investment media TradingNews on May 27 (local time), XRP is currently trading around $1.37, maintaining its 3-week range between $1.32 and $1.45. The Bollinger Band width has compressed to its narrowest level this year, and the outlet analyzed that this pattern typically precedes a strong directional breakout. XRP is currently trading below its 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMA), with the 200-day moving average at $1.4512 specifically identified as a key trend divergence point.

The technical trend remains unstable. The 14-day Relative Strength Index (RSI) has fallen to around 43, entering a bearish dominant zone, and the Moving Average Convergence Divergence (MACD) shows a nearly neutral trend. The outlet diagnosed that XRP is currently in a directionless compression phase, and volatility is likely to expand sharply with the emergence of an external catalyst.

The key market variable is whether XRP breaks above $1.4512. The outlet predicted that if XRP recovers this level on a daily closing basis, an upward path to $1.80 and $2.20 could open. Conversely, if the $1.32 support line breaks, the risk of a decline to $1.25, or even the psychological support level of $1, could increase.

Institutional fund flows are relatively positive. The cumulative net inflow into XRP spot ETFs has now exceeded $1.44 billion, with total assets under management estimated at approximately $1.24 billion. The outlet reported that Standard Chartered projected an additional $4 billion to $8 billion in XRP spot ETF inflows over the next 12 months. Furthermore, the US Senate Banking Committee's passage of the CLARITY Act by a 15-9 vote, pushing to classify XRP as a commodity, was also evaluated as a key market positive.

However, Bitcoin's weakness continues to hold XRP back. The 30-day correlation coefficient between Bitcoin and XRP has currently risen to around 0.85, and if Bitcoin fails to maintain the $74,057 support line, XRP is also likely to face pressure to test the $1.25-$1.30 range. Conversely, the outlet predicted that if Bitcoin recovers the $77,000-$78,000 resistance level, XRP could also attempt to break above its 200-day moving average.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*