XRP recently retested the $1.00 level after a sharp decline, sparking debate among bulls and bears. The drop followed May's personal consumption expenditures price index reading, the Fed's preferred inflation gauge, which rose at its highest level since 2023, reinforcing the central bank's tough stance on inflation.
XRP had fallen for three straight days, testing a major volume block at $1.06, where over 830 million XRP changed hands. However, bulls failed to hold this crucial support, leading to the $1 test.
Three Potential Scenarios
With the $1 level tested, three scenarios emerge:
- Rebound continues: XRP has already bounced from $1.00, currently trading at $1.07, up 2.95% in the last 24 hours. The $1.06 level could now act as support.
- Consolidation: XRP may trade sideways as the market awaits potential catalysts.
- $1 breach: If the price fails to hold, transaction history points to next support levels: $0.80 (923M XRP), $0.62 (1.16B XRP), and $0.51 (1.06B XRP), according to analyst Ali.
XRP and RLUSD News
On a positive note, the XRP Ledger now has more RLUSD on-chain than Ethereum, with $810 million vs. $760 million. Additionally, the Japan Financial Services Agency approved RLUSD as a new type of electronic payment instrument, making it available through SBI VC Trade to both institutions and retail customers.
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