XRP has fallen below a key support trendline on the daily chart, increasing the likelihood of further declines.

On May 28, blockchain outlet the Crypto Basic reported that XRP has slipped about 4 percent over the past 7 days, entering a key zone where the ability of buying to defend levels has become important. The market is watching whether the decline remains a short-term correction or leads to a downtrend.

Analyst Casitrades said XRP has entered a "critical moment." She said XRP, the fifth-largest cryptocurrency by market value, has broken below the lower boundary of a symmetrical triangle pattern that had persisted for months.

The pattern had kept XRP's price contained since Jan. 31. XRP had moved with lower highs and higher lows, but a run of bearish daily candles has pushed it below the rising support line. Casitrades described the area as a critical zone for XRP.

The market has previously failed several times to break through resistance around $1.65. The area sits near the golden pocket of a Fibonacci retracement and has repeatedly blocked upside attempts since February. Each rejection weakened the rebound, and selling ultimately broke the lower support line.

The key question now is whether XRP can return inside the triangle. If buying does not flow in quickly, the next zone the market is watching is lower. Casitrades also set out a next buying area if bearishness continues. The range she marked in green on the chart was $1.08 to $0.86, corresponding to the Fibonacci 0.786 to 0.854 zone. A further 15 to 32 percent correction would be needed to reach that area from the current price.

The analysis did not assume only a decline. It also laid out the possibility that a sharp rebound from the green zone could lead to a retest of the $1.65 resistance. Casitrades said the level would determine success or failure for XRP. She assessed that sellers retain control until XRP rises above $1.65.

In derivatives markets, the bearish shock has already been heavily reflected. Over the past 24 hours, $19.22 million in leveraged XRP positions were liquidated, including $18.80 million in long positions. A modest rebound from recent lows meant short-position losses were larger over the past 4 hours, but overall long liquidations weighed on the market.

Futures fund flows also contracted. Over the same period, more contracts were liquidated or closed than newly opened. Futures inflows were $763.50 million and outflows were $865.00 million, for net outflows of $102.00 million. As price volatility increased, signs also emerged that traders voluntarily reduced positions for risk management, in addition to forced liquidations.

Spot market flows were somewhat different. Over the past 24 hours, XRP spot inflows were tallied at $127.30 million and outflows at $142.16 million. That amounted to 14.86 million XRP leaving trading platforms globally. Some market participants interpret the growing volume moved off exchanges as bargain buying during the decline.

XRP's near-term direction has now come down to two levels. On the downside, $1.08 to $0.86 has emerged as the zone that will determine whether buying interest comes in, while on the upside, whether XRP can regain $1.65 remains the benchmark for a trend reversal. The market is watching whether spot buying after the support break can offset weakness in derivatives markets.

Who else is unable to sleep with XRP at this critical moment?!#xrpcommunity pic.twitter.com/8svsikITAI