XRP stabilized above the critical $1.10 support level on Monday, trading near $1.14 after plunging to a four-month low of $1.09. The steep decline was part of a broader $400 billion cryptocurrency market capitulation triggered by escalating military strikes between Iran and Israel, compounding liquidity fears stemming from the U.S. Treasury’s $900 billion account rebuild.
The token is now tracking an oversold bounce alongside large-cap peers, with Bitcoin hovering near $61,000 to $63,000 as wealthy investors seek established liquidity pools amidst the geopolitical uncertainty.
Exchange Outflows and ETF Accumulation
The ongoing recovery is backed by elevated trading volumes and distinct on-chain accumulation. Investors withdrew more than 25 million XRP from cryptocurrency exchanges in recent days, according to Binance, which also tracked $118 million in net inflows to XRP-linked Exchange Traded Funds during May, pushing cumulative ETF inflows near the $1.4 billion mark.
Technical Resistance Levels
The asset remains locked within a broader descending channel despite the short-term relief rally. Current market structure places immediate support at the $1.13 to $1.14 range. If the token fails to hold the $1.10 line, analysts warn of a potential retest of the $1.00 psychological support. Conversely, upward momentum faces major resistance bands situated at $1.15 to $1.20, as detailed by Pluang.
How the Treasury Rebuild Alters Institutional Crypto Strategies
The rapid shift of 25 million XRP into cold storage signals a change in how institutions manage risk during concurrent geopolitical and macroeconomic stress events. Unlike previous retail-driven rallies, the current stabilization relies heavily on ETF structures absorbing excess supply.
As the U.S. Treasury drains broader market liquidity to rebuild its general account, capital allocation within the digital asset sector is contracting toward high-liquidity assets with regulated ETF wrappers, stranding smaller alternative tokens without similar institutional guardrails.