XRP price outlook: can bulls hold $1.40 support amid fresh selling?

XRP has pared recent gains as prices extended their retreat from highs near $1.60, with a dip across cryptocurrencies seeing the Ripple token slip to support around $1.45.

Bitcoin and Ethereum were testing respective support levels near $70,000 and $2,150.

While analysts at Citi and across the ecosystem maintain a long-term bullish take, the short-term outlook suggests selling pressure could intensify.

BTC risks a plunge below $65,000.

Such a pullback could mean broader market volatility, with XRP likely to face a deeper correction.

XRP flips lower amid broader market headwinds

As noted, XRP rebounded sharply to a weekly high near $1.60 this week.

The gains came as Bitcoin surged to a high of $76,000, fueling renewed optimism within the altcoin market.

However, BTC has shed gains to near $70,000, and the reaction also sees XRP down.

The altcoin has dropped 4% over the past 24 hours, and hovers precariously near the $1.40 support amid a broader reset.

Further declines could expose XRP to fresh selling as risk assets falter.

This outlook takes hold as geopolitical tensions, including the Iran conflict and escalating Middle East strife, drive oil prices higher.

Analyst Jeff Currie has warned that the world risks a huge oil market supply shock.

According to Currie, oil markets are currently “mispriced,” with oil at $130 to $150 a barrel in the physical market, but just $100 a barrel in futures.

Disruptions and the impact of the energy sector turmoil could reach COVID-era levels.

Already, this is reigniting inflation fears, with the US Federal Reserve leaving interest rates unchanged.

Cryptocurrencies, which had been rising despite the initial oil surge and impact on stocks, are paring gains and falling in line with the broader market.

However, a bullish undercurrent persists amid resilient institutional inflows into XRP ETFs. On-chain data also reveals XRP Ledger metrics on a bullish trajectory.

This includes rising transaction volumes and growth in active addresses.

XRP could also get lifted by sentiment around Evernorth Holdings, the largest XRP treasury firm.

Evernorth has filed a Form S-4 with the US Securities and Exchange Commission to list on Nasdaq via a SPAC merger and plans to actively deploy capital to DeFi.

If a broader crypto bounce materializes despite the earlier-mentioned headwinds, bulls could regain an upside footing.

XRP price technical outlook

XRP's technical setup points to fresh downside risks, with price retesting $1.45 support after the latest rejection at $1.60.

The  daily and 4-hour charts reveal a largely bearish structure, including a descending pennant pattern that targets $1.22–$1.26.

A key support cluster lies around $1.40, though, and an immediate pivot could bring the recent rejection level into play.

If bulls manage a relief rally as Bitcoin bids to reclaim $74,000-$76,000, momentum could push XRP towards $2.00-$2.25.