XRP Price Breaks Multi-Month Support Despite Ripple’s Push Into Turkey’s $200B Crypto Market

Ripple (XRP) has moved below the multi-month support level of $1.29 after intense selling for three straight days. The drop continues today, June 2, as buyers remain hesitant despite Ripple announcing that its RLUSD stablecoin will expand into Turkey.

RLUSD Expansion Fails to Capture XRP’s Dip

CoinGape has reported that RLUSD will be available in Turkey via the Bitlo, Bitexen, and BitLira exchanges, with the expansion taking the market cap of the stablecoin from $1.69 billion to $1.81 billion while volumes topped $184 million per CoinGecko.

RLUSD’s gains have not extended to XRP, and it has dropped by 2.8% today, June 2, to trade at $1.26 at the time of writing as traders hesitate after fear gripped the market following Bitcoin’s drop below $70,000.

But institutions are still buying even when retail sits on the sidelines with XRP ETFs recording $4.13 million in inflows on June 1, while Bitcoin and Ethereum shed $483 million and $44 million, respectively.

CoinShares also reports that XRP had inflows of $20 million last week, which was higher than any other crypto, reaffirming that institutions remain bullish towards the price.

These institutions might be positioning themselves for a possible gain in price as XRP Treasury firm Evernoth nears a NASDAQ listing after filing an S-4 with the SEC.

Long Liquidations Surge as Open Interest Remains Flat

CoinGlass data shows that $13 million XRP longs have been flushed out between June 1 and June 2. Long liquidations have been more than short liquidations for three straight days, and that exerts additional selling pressure on the XRP price.

The demand for XRP remains muted, with OI stalling for 17 days at between $2.8 billion and $2.9 billion since May 16. A flat OI shows traders are not willing to open new positions.

The flushing out of $13 million longs in two days has also made short sellers more than long buyers, with the long/short ratio falling to 0.87.

XRP Price Loses Multi-Month Support as Consolidation Ends

XRP value moved between $1.29 and $1.52 for four months between February 7 and June 1. Bears pulled the price below this support of $1.29 on June 2, ending this consolidation while pushing the price further down from the 50-day EMA obstacle of $1.37.

The RSI reading of 31 shows that the momentum is currently favoring bears who might test the support at $1.21. But this RSI also shows that sellers are getting exhausted, hinting that a relief rally might occur if selling eases.

Looking up, XRP faces an obstacle at the previous support of $1.29 if the price starts moving up after buyers take over after sellers reach exhaustion. Moving above the midline of $1.40 will confirm that XRP is attempting to make a bullish breakout from consolidation.