XRP fell below the $1.06 support level, analyst warns deeper losses may follow

Loss of $1.06 support highlights further risk

Data on price distribution reveals that more than 830 million XRP tokens have changed hands around the $1.06 mark. This level had previously served as one of the strongest defense zones for buyers. As of June 30, XRP’s price slipped below this heavy-volume area, dropping to $1.03 and intensifying pressure on the technical outlook.

With this break, many investors who took positions near $1.06 are now in the red. This creates a potential resistance region, as rising prices could encounter increased selling pressure from holders seeking to break even. Martinez also notes that bullish signals observed on the daily chart have weakened due to this latest development.

Ali Martinez emphasizes that unless XRP reclaims the $1.06 level, any rebound could amount to little more than a temporary pause rather than a lasting reversal.

Whale selling diverges from retail activity

Martinez points to a significant divergence among XRP holders. Large wallet investors—so-called whales—have opted to sell in line with the broader market’s declining liquidity, while smaller investors continue to try to absorb the selling pressure.

The number of daily active addresses on the XRP network has surged by roughly 50%, approaching 40,000. This uptick indicates ongoing interest from individual investors. Nonetheless, such heightened participation has not been enough to alter the overall bearish price outlook on its own.

Glossary: The TD Sequential indicator is a technical analysis tool used to spot short-term exhaustion and possible reversal points in price movements. It does not issue directional signals by itself and is typically used alongside support, resistance, and volume metrics for confirmation.

On the daily chart, TD Sequential flashed a local rebound signal that has kept some optimism alive in the short term. However, Martinez cautions that without a move back above $1.06, the potential impact of this signal remains limited.

Two main downside targets emerge on weekly chart

In the weekly timeframe, XRP has encountered resistance at the upper band of its long-term ascending channel. Martinez’s latest analysis indicates that the failure to maintain $1.06 spotlights two main downside targets.

The first target sits at $0.80, which corresponds to the middle region of XRP’s trading channel and hosts a significant volume block. The second, more critical target is $0.70—a level where global trend support coincides with areas of previous accumulation.

Martinez’s roadmap suggests the likelihood of continued decline has increased, with weekly candle closes serving as the key determinant for market direction. Should selling by whales persist and retail holders capitulate, XRP could face an additional correction approaching 30%.