XRP Hits $1 Mark: Will It Break Down or Bounce Back?

XRP is trading near the $1 level on Friday, down 2% from previous levels. The psychological barrier of $1 is crucial this weekend as thin liquidity and a chart setup point toward a potential drop to $0.85.

The measured move target, based on a two-month compression pattern, suggests that if XRP fails to hold above $1, it could fall by 15% to 17%. The Relative Strength Index (RSI) is at 34.19, near oversold territory but not yet extreme, indicating there's still room for the price to drop before a technical bounce becomes likely.

Weekend volume is typically thin, and breakdowns in low liquidity often result in overshooting rather than finding clean support. XRP ETF inflows have slowed significantly, hitting just $1.01 million this week, compared to previous weeks' totals of $14.86 million, $8.15 million, and $6.78 million.

The Senate's failure to pass the Clarity Act has also weighed on XRP, with regulatory clarity being a key narrative driver for the token. Derivatives data shows that traders are still positioned for a bounce, but long liquidations have hit $11.75 million in 24 hours against just $310,000 in shorts.