XRP Price Faces Risk of Declining to February Lows Amid Persistent $1.50 Sell Wall
By Alejandro Arrieche | Published: May 18, 2026, 18:15 GMT+00:00
The price of XRP has seen significant turbulence in recent weeks, with the token now at risk of falling back to its February lows following repeated unsuccessful attempts to break above the $1.50 resistance level. The market’s inability to sustain gains beyond this price point has led to a sharp increase in long liquidations and growing concerns over XRP’s short-term outlook.
Surge in Long Liquidations Signals Selling Pressure
After multiple failed breakouts above $1.50, long liquidations for XRP surged to nearly $670 million over the past 24 hours—levels unseen since February of this year. This spike points to an ongoing long squeeze in the market. Historically, XRP experienced a similar trajectory when it failed to hold above $1.50 in February, subsequently dropping to as low as $1.27 within days.
The recent increase in selling pressure corresponds with broader resistance also noted across the crypto market. Ethereum (ETH) has struggled to climb past $2,400, and Solana (SOL) experienced a pullback after reaching $90. Trading volumes for XRP have risen by 90% in the last day, suggesting accelerated selling; however, volumes remain modest relative to XRP’s circulating market capitalization. This indicates that while selling pressure is mounting, a wholesale shift in market sentiment has yet to materialize.
Goldman Sachs Exits XRP Holdings Amid Market Uncertainty
Data from the U.S. Securities and Exchange Commission (SEC) reveals that investment banking giant Goldman Sachs liquidated its entire XRP position during the first quarter of 2026. The move signals caution among institutional investors who may be anticipating a deeper correction if XRP fails to break out from its current consolidation phase. Goldman Sachs similarly reduced its exposure to Solana in the same period.
XRP ETF inflows had been positive heading into mid-May, with exchange-traded funds attracting $28 million over Thursday and Friday alone—the strongest influx since early February. Despite these inflows, market sentiment has soured noticeably. The Fear and Greed Index, which stood at a high of 62 just weeks ago, has dropped to 38, reflecting a shift from investor optimism to heightened caution and fear. This volatility and lack of conviction raise the specter of a renewed bear market if liquidations accelerate further.
Mid-Term Bullish Outlook Supported by Historical Buy Signals
While XRP faces near-term headwinds, analysts remain cautiously optimistic about its medium-term prospects. A technical buy signal on the weekly chart—based on the Relative Strength Index (RSI) falling below 30—has historically preceded strong rallies in XRP, with previous occurrences delivering gains ranging from 200% to 1,480%. This pattern has maintained a 100% win rate over the past six years during similar cycles.
Currently, the RSI has crossed back above the signal threshold, hinting that bearish momentum may be subsiding and bullish sentiment could be returning. This technical development suggests that XRP may be near a cycle bottom, potentially around $1.15, allowing for limited further downside—estimated at roughly 5%—before buying interest intensifies.
Short-Term Risks Highlight Need for Caution
On the daily chart, XRP’s rejection at $1.50 on May 14 has amplified selling momentum, with the next support level identified near $1.32—a potential 3.6% decline from current prices. The RSI at 43 signals growing bearish pressure; a drop below 40 would confirm the initiation of a sell signal. Should XRP breach $1.32, the token risks falling further to approximately $1.13, which would equate to an 18% drop.
Additional indications from the 4-hour chart corroborate this bearish outlook in the short term. A recent sell signal on this lower time frame, coupled with above-average volume, supports expectations of further short-term declines before a possible recovery phase.
Conclusion
XRP is currently navigating a critical juncture marked by persistent resistance at $1.50 and a significant sell wall. With long liquidations at the highest levels since February and key institutional players like Goldman Sachs exiting their positions, short-term risks remain elevated. However, a historically reliable technical buy signal on the weekly chart offers a cautiously bullish perspective over the coming weeks.
Traders and investors should monitor whether XRP can hold above $1.32 support and watch for shifts in market sentiment as the token attempts to establish a base. While downside risks exist, particularly if XRP breaks below key support levels, the medium-term outlook retains upside potential should historical patterns prove consistent.
For further insights, readers may also explore related market forecasts on cryptocurrencies, commodities, and indices available at FXEmpire.