How XRP Price Outlook Turns Bearish After Sharp Break Below $1.40

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This article was first published on The Bit Journal.

XRP price has lost momentum sharply after a break below a critical level that traders had fought to defend in recent sessions. XRP fell from $1.44 to $1.36 as the sellers increased their pressure and attempts of recovery were unable to be sustained, a decline of 3.37% in 24 hours. 

The move below $1.40 has changed the outlook of the near-term structure, and traders are now looking for the $1.36-$1.40 zone to support or, if lost, open up deeper downside.

Weak Structure Confirmed with Break Below $1.40

$1.40 looks like the most important technical development for XRP if traders look ahead. After charging up to $1.40; the level couldn’t hold and initiated a wider selloff. 

Since then, XRP price has found it hard to regain a lot of ground. Attempts to recover have all stalled under $1.40-$1.41, turning that area into resistance.

This validates a change in short term structure where sellers have found their way from weeks of fragile consolidation to appearing back in charge.

Descending Channel Signals Ongoing Distribution

XRP price is currently hovering in a descending channel between $1.36 and $1.40 according to price action and the premise of lower highs are forming.

That pattern fits into the common profile of a distribution phase, in which demand is weak and rallies are short-lived. A failed bounce around $1.36 confirmed that buyers are not stepping up with conviction.

Available data supports this view. After a deeper drawdown earlier in 2026; XRP price has traded largely within the $1.30-$1.40 range; with resistance repeatedly capping upside near $1.49. 

The trend of lower highs from mid-2025 is still intact.

ETF Flows and Demand Condition are Still Soft

There are also signs of slowing in institutional participation. March has seen the XRP ETF chart evidence of dwindling investor demand with just four inflow days. 

Weekly flows are modest, registering net inflows of about $640,000, nowhere near the earlier periods of stronger accumulation.

While aggregate inflows since launch have surpassed $1.2 billion, the momentum has clearly dissipated in recent weeks. 

That image correlating with this price behavior is that demand exists but isn’t enough to absorb relentless selling pressure.

Downside Risk Builds as the Key Levels to Watch

The next thing to watch in the immediate term is the $1.36-$1.40 support zone.

If this range is maintained; it could allow XRP to consolidate and try for $1.41-$1.44 with a full recovery taking back $1.55-$1.60; which has marked the endpoints for previous advances.

But a clean break beneath $1.36 would open up the $1.30-$1.32 zone; where support thins out and downside might pick up pace.

More technical forecasts indicate that should weakness persist in the network; XRP could test deeper levels around $1.13 and possibly $1.26; which translates to a potential 23% pullback from recent highs. 

For now, momentum is still tilted toward sellers.

Conclusion: Market Still Leaning Bearish

XRP Price still holds around the $1.36 zone as price failed to hold the $1.40 support level, consequently opening up for sellers.

Fading technical structure, failed attempts at recovery and weakening ETF demand all suggest a market where the sellers are still in charge in the short term. Some stabilization is a possibility, but there’s need to start seeing XRP capture higher resistance levels and subsequent inflows of stronger capital.

Unless ETF inflows yield strength once again and the broader crypto market picks up, the downside risk is still on the table.

Glossary

Support: A price level at which buying interest might halt declines.

Resistance: A level where the selling pressure causes price no to rise further.

Descending Channel: A bearish pattern characterized by lower highs and lows.

ETF Inflows: Money flowing into funds to purchase an asset.

Distribution Phase: A phase, during which assets get sold off gradually.

Frequently Asked Questions About XRP Price Outlook

Why did XRP fall below $1.40?

Further downside was triggered as it lost a key support level and selling pressure increased.

Where is the next support level?

Key area after that is $1.30-$1.32, then deeper support $1.13-$1.26

Is XRP still in a downtrend?

Yes, XRP has been making lower highs since mid-2025.

Are institutions still buying XRP?

ETFs see sustained but slowed inflows into March 2026.

What level signals recovery?

A sustained breakout above $1.55-$1.60 would indicate a stronger recovery.

References

CoinDesk

KuCoin

MEXC

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