XRP fell toward $1.10 on Wednesday after a high-volume breakdown wiped out support near $1.20. The token lost another 5% in the latest selloff, hitting multi-month lows as a wave of forced liquidations drove the slide. Traders are now parsing whether the washout signals a final flush or the start of a deeper decline.
Breakdown below $1.20
The move lower unfolded quickly once XRP lost the $1.20 handle. Volume surged as bids thinned out, accelerating the drop through what had been a stable support zone. The breakdown caught many leveraged longs off guard, triggering stop-losses and margin calls that piled more pressure on price.
That kind of liquidation-driven selling can feed on itself. Each cascade knocks out a fresh batch of positions, pushing the token further from the level that traders had been watching. By the time the dust settled, XRP was trading near $1.10, a level not seen in weeks.
Capitulation or something worse?
The big question hanging over the market is whether this is a capitulation event — the kind of panic that clears out weak hands and sets up a bounce — or the first leg of a longer rout. The facts on the ground aren't offering a clear answer. Traders see the heavy volume as evidence that the selling is exhausted for now, but they also note that the recovery, if it comes, will need to re-establish support above $1.20 to change the narrative.
Without a catalyst to stabilize sentiment, the path of least resistance remains lower. The token's slide to multi-month lows reflects broader risk aversion in the crypto space, but XRP's chart turned particularly ugly after it lost the $1.20 line that had held for several sessions.
What traders are watching now
For now, attention is on whether XRP can hold the $1.10 area. A clean break below that level would open the door toward the psychological $1 mark. On the upside, reclaiming $1.20 would signal that the breakdown was a fake-out, but that's a tall order given the overhead supply left by trapped buyers.
The uncertainty itself is feeding the volatility. Until the market gets a clear signal — either a decisive bounce or a fresh lower low — traders are likely to keep their positions light. The washout may have flushed out leverage, but it hasn't answered the central question: is the selling done, or is this just a pit stop on the way down?
