XRP has shed more than 7% over the past three sessions, sliding from a rejection at $1.55 to trade at $1.43 as of Tuesday morning. The retracement has formed an ascending trendline through May, but a break below the current level could accelerate losses. Daily trading volume has cratered 42% to $2.38 billion, suggesting conviction is thin on both sides.
Support at $1.40 under pressure
Analysts at MCO Global have pinpointed a micro-support zone around $1.40 as critical for XRP's near-term direction. The level held during Monday's intraday dip and is now being tested again. If the price stays above $1.40, the outlook remains constructive — a rebound toward the $1.55–$1.58 resistance band is possible, with a run to $1.67 not ruled out.
But the margin for error is slim. A close below $1.40 likely triggers an immediate slide to $1.37, and if that gives way, the next floor sits at $1.30. The market is watching that handle closely.
The Elliott Wave picture
Applying Elliott Wave theory, the recent retest of $1.40 aligns with a wave B correction. That would mean wave C is still ahead, potentially dragging prices lower before a larger uptrend resumes. The pattern is not yet confirmed — it depends on whether $1.40 holds as support or breaks as resistance-turned-support fails.
On the monthly chart, XRP is still up 0.98% in May, a small gain that keeps the broader trend neutral-to-positive. The daily drop, however, has knocked the market cap to $88 billion, leaving XRP as the fifth-largest cryptocurrency.
The next few sessions will determine whether the $1.40 support holds or gives way. A bounce from here would set up a test of the $1.55 rejection level again. A breakdown opens the door to $1.30 and likely a retest of the May lows. Volume will need to pick up — the 42% drop in turnover suggests traders are waiting for a clear signal before committing.
