XRP Price News: XRP Risks 8% Drop as Selling Pressure Accelerates at $1.35

XRP (XRP) has dropped by 3% in the past 24 hours after hitting a strong sell wall for a third time at $1.35, as hopes of a ceasefire in Iran continue to fade.

President Donald Trump’s hostile rhetoric and continuous threats regarding an imminent attack on the country’s key infrastructure have kept the market on its toes.

The head of state seems resolved to reopen the Strait of Hormuz, but the Iranian government seems equally determined not to let that happen.

This has kept oil prices near the $115 mark in the past couple of days, which is a concerning situation for analysts, as this could result in higher inflation down the road and a hawkish stance from central bankers across the globe.

XRP ETF Inflows Dry Up as Market Shuns Any Altcoins Other Than ETH

Analysts no longer expect that the U.S. Federal Reserve will cut rates this year if the war with Iran persists, and this is bad news for cryptocurrencies.

The market tried to bounce back yesterday, but bears seem to be in control of the price action no matter what.

Trading volumes for XRP remain quite low despite today’s retreat, accounting for just 2% of the token’s circulating market cap.

This is a clear indication that interest in the token has vanished, as investors seem to have rotated their capital to high-quality assets like Bitcoin (BTC) and Ethereum (ETH).

Data from SoSoValue also shows that ETF inflows to XRP have dried up almost entirely, recording zero money being moved to these vehicles in 4 of the past 7 days.

Similarly, open interest in XRP futures remain 75% below its July 2025 peak at around $2.5 billion and has been hovering near that mark for the past two months at least, indicating that traders’ participation in the market remains pretty weak.

Two Sell Signals Near $1.35 Confirm Bearish Outlook for XRP

The 4-hour chart confirms that the $1.35 mark is the key resistance to watch, as the token has retreated four times already from that level in the past two weeks.

As we emphasized in a recent XRP price prediction, a bearish breakout below $1.30 could set in motion a much stronger correction toward the $1.20 area, meaning an 8% downside risk for XRP.

The Relative Strength Index (RSI) just dived below the 14-period moving average, which is often considered a sell signal. Meanwhile, our signals system just spotted two “sell” signals near this mark, which increases the odds of a breakout.

This system tracks specific candle patterns featuring above-average trading volumes that tend to indicate strong institutional and whale participation. When they pop up near key levels like this one, we interpret them as “high-conviction” trades.

Traders could wait for a move toward $1.33 to get a better entry for an XRP short position in this scenario. If a target is set at $1.20, this trade would offer an attractive 2.7x risk-reward ratio if the stop price is set above that $1.35 sell wall.