XRP descended to its weakest trading level in over three months, settling near $1.3208 after breaking through critical support at $1.3320. This decline marks a 15-week low, driven by aggressive selling that successfully neutralized constructive on-chain signals. While significant token outflows typically indicate accumulation, the current price action demonstrates that sellers retain dominance whenever the asset attempts a recovery. The market remains locked in a divergence where fundamental supply dynamics contradict immediate price performance.

Data compiled by Woofun AI shows that more than 25 million XRP tokens moved off exchanges following a substantial inflow earlier in the week. This movement suggests that certain investors utilized the price dip to transfer assets into long-term storage, a behavior historically associated with bullish positioning.

Concurrently, spot XRP ETFs recorded fresh capital inflows, pushing cumulative flows to approximately $1.42 billion. Despite this institutional demand, the influx has proven insufficient to reverse the prevailing downtrend or halt the downward momentum.

The technical breakdown occurred on a volume spike of 55.03 million, which decisively pushed the price through the $1.3320 support zone. Following this breach, selling pressure extended the decline toward $1.314 before a modest bounce stabilized the asset near $1.32. The failure of these recovery attempts highlights a critical disconnect: while exchange outflows are structurally positive, the market continues to sell into every upward move. This dynamic keeps the short-term price structure fragile and defensive.

Woofun AI notes that leverage was heavily flushed during May, with most high-risk long positions already liquidated as XRP bounced from the $1.28 area. This cleansing of speculative positions has left the order book relatively thin of aggressive buyers, allowing sellers to dictate the lower highs. The immediate support level now sits at $1.31; a loss of this threshold would reopen the path to $1.28 and potentially extend losses toward $1.20. Conversely, reclaiming $1.34 is essential for any meaningful recovery.

A large cluster of short-liquidation orders resides between $1.34 and $1.40, creating the potential for a sharp upward move if buyers can regain control of this range. Breaking back above $1.34 could trigger momentum toward $1.37 and eventually $1.40, as the market seeks to resolve the imbalance between short sellers and long-term holders.

However, until the price action aligns with the accumulation signals from exchange outflows, the setup remains unstable.

Woofun AI analysis suggests that one side of this divergence must eventually yield to the other. The current configuration presents a high-risk environment where the tape remains defensive, and sellers continue to overpower recovery attempts. Investors must monitor the $1.31 support closely, as its integrity will determine whether XRP stabilizes or resumes its descent toward deeper liquidity zones. The resolution of this conflict will define the next major directional move for the asset.