XRP briefly broke below the key support level of $1.30, falling to its lowest level in 16 weeks.

Cointelegraph reported on May 28 that XRP fell to as low as $1.26. That has fueled expectations the bearish move could extend into June.

The core of the decline is a break in technical support. On the weekly chart, XRP fell below the lower trendline of a pennant near $1.35 and entered a downside-breakout zone. The chart’s measured target was put at $0.63, about 50 percent below the current price.

Markets are also discussing the possibility of a test of the $1 level. Analyst Egrag Crypto said XRP moved into a structurally bearish zone after sliding below $1.30. Analyst ChartNerd said once the $1.30 support broke, the path toward $1 opened earlier than expected.

In the near term, $1.27 is being cited as the next support level. If that level also fails, XRP/USDT could slide to $1.11 and then test $1, according to forecasts. The market is weighing that the lower end of the price range is entering a phase of sequential declines.

Investor sentiment is also cooling quickly. Data compiled by on-chain analytics firm Santiment showed that social media sentiment related to XRP has turned clearly negative in recent days. The ratio of positive to negative mentions tilted toward the bearish side, and the FUD (fear, uncertainty and doubt) indicator has also moved to its highest level in three weeks. Bullish views amount to only 1.1 for every 1 bearish view.

Some also point out that extreme fear has not always led only to further declines. Santiment said this level of fear and skepticism has previously acted as a contrarian signal in XRP’s price. That means there have been cases where the price stabilized or rebounded after entering a so-called “fear zone.”

The problem is that holder profit-and-loss indicators remain uneasy. XRP’s net unrealized profit/loss is now moving between capitulation and fear zones. This is read as a sign traders’ anxiety has not yet eased. More than 58 percent of XRP holders are in a loss zone at current prices, and in past cycles such a setup has appeared ahead of larger corrections.

Earlier, XRP showed bottom signals in the $1.40 to $1.50 range, including a decline in the MVRV ratio and increased activity on the XRP Ledger. Markets saw that range as an undervalued zone, but expectations of confirming a bottom have weakened as the recent sharp drop pushed the price below that band.

Against this backdrop, the market’s focus is narrowing to whether support at $1.27 and $1 holds. Even if a short-term rebound emerges, concern about rising volatility is likely to persist until the bearish chart damage is repaired. If the view spreads that fear is excessive, attention is also on whether there will be an attempt at short-term price stability or a rebound as in the past.

XRP’s crowd sentiment has swung sharply negative again, with the ratio of positive to negative commentary dropping to just 1.1 bullish comments for every 1 bearish comment. Historically, this kind of fear and skepticism has often acted as a contrarian signal for XRP’s price.… pic.twitter.com/KGubO783yE