XRP Price Pullback Signals Consolidation as Traders Watch Key $1.40 Support

The price of XRP has dropped as it was unable to sustain its momentum above $1.43-$1.45. The token witnessed a 3.3% decline and dropped from $1.4588 to $1.4108. This shows that despite the recent rally, selling pressure is again rising. XRP right now trades at $1.39. The current scenario reflects a 1.54% decrease in the past 24 hours.

XRP value dropped below its intermediate support levels of $1.4450 and $1.4320. It failed to maintain its position at higher price levels, causing the asset to drop. This momentum started a short-term correction.

The selloff caused trading volume to decrease by 43.85% to $2.47 billion in the past day.

Technical Structure Shows Consolidation

XRP technically trades on a downward trend now and immediate resistance is at $1.430. 

The formation suggests that sellers are still active at higher levels and buyers are attempting to defend key support zones.

The price also dipped below the 50% Fibonacci retracement level of the upward move from $1.3362 to $1.4739. It signals a loss of short-term bullish momentum.

The Relative Strength Index (RSI) has dropped below the 50 level. This suggests weakening buying pressure while the MACD is gradually losing bullish momentum.

Despite these signals, XRP still holds above the $1.3880 support which aligns closely with the 61.8% Fibonacci retracement level.

Institutional and On-Chain Signals

According to SoSoValue, XRP ETFs saw a daily net outflow of $6.15 million on March 5, 2026. This is a clear indication that investors were selling their positions for profits. 

However, the broader trend remains positive, with cumulative net inflows reaching approximately $1.25 billion across XRP ETF products. Trading activity remained steady, and the volume reached $56.02 million in the latest session

Derivatives data shows that open interest is at $2.32 billion, with a 0.25% increase. This indicates a slight increase in active futures positions. 

The past 24 hours saw total liquidations reach $3.38 million. Longs accounted for $2.60 million, while shorts reached $776.78K. These values show how the recent decline has impacted the bullish positions.  

Meanwhile, options volume dropped 85.28% to about $1.18 million, highlighting reduced speculative activity.

Also Read: Crypto Market Update: XRP Tests $1.55 Resistance as Analysts Track Breakout Setup

Key Levels to Watch

The key support level stands at $1.40. Breaking above this level could allow the token to stabilize and potentially attempt a rebound toward $1.43-$1.45. 

A sustained break above $1.45 could open the way toward $1.47 and $1.50. 

On the downside, a break below $1.3880 could lead to a correction toward $1.3680, with additional support at  $1.350 and $1.335.