XRP has fallen below the important $1.40 support level, causing a short-term drop with strong selling volume. The price is now holding between $1.38 and $1.40, with recent lows near $1.3865 as of May 5, 2026.
Technical Breakdown
This move was accompanied by a spike in volume of over 103 million, turning $1.40 from support into resistance. After the initial selloff, the price settled into a tight range, which often comes before a strong move in either direction.
- Resistance: $1.40 (immediate pivot), then $1.45 (multi-month ceiling).
- Support: $1.35–$1.36 near-term, with major floor at $1.30.
If XRP can move back above $1.40 to $1.45 with strong volume, it could quickly aim for $1.50 to $1.70. If it fails to recover, the price may drop further to test $1.30 or even lower.
ETF & Whale Signals
In April, XRP ETF inflows were strong at around $75 to $82 million, which helped keep the price above $1.40 earlier in the month. The longest inflow streak of 2026 ended with small outflows, which contributed to the recent drop. At the same time, activity from large holders is mixed but mostly positive. Some are still accumulating, and exchange reserves are at multi-year lows, which reduces the amount available to sell.
Long-Term Tailwinds Remain Strong
Even though there is short-term pressure, the fundamentals remain positive:
- Ripple’s Rakuten integration now reaches 44 million users in Japan.
- RLUSD stablecoin expansion and ongoing regulatory progress (CLARITY Act markup eyed for May).
XRP’s market cap sits near $85–87 billion, with elevated 24-hour volume during the move.
2026 Outlook
The price is now stuck in a tight range after a high-volume drop, which has created a lot of tension. Buyers need to push the price back above $1.40 quickly to take control and reverse the drop. If selling continues, sellers will aim for $1.30 to $1.35. Many analysts think these levels could be a good opportunity to accumulate before the market shifts or new regulations come in.
XRP is still far below its 2025 highs of about $3.65, but with large holders buying and fundamentals improving, the situation could turn positive for buyers if resistance is broken. Keep an eye on Bitcoin’s price and ETF flows in the next few days for the next big move.
