[Digital Today reporter Yoonseo Lee (이윤서)] An analysis said XRP could fall once more toward the $1 level before a full-fledged rebound.

On June 5 (local time), blockchain media outlet The Crypto Basic reported that market analyst Arthur said XRP may retest the key $1 price area before the current correction ends.

Arthur pointed to a weekly chart he posted on X, formerly Twitter, saying XRP’s 0.786 Fibonacci retracement zone is formed near $1.17 and that area has already been tested twice. He also noted XRP has broken above a long-term downtrend line that has persisted since its all-time high. It is a sign long-term downward pressure is weakening, but he judged the market may not shift immediately into an uptrend.

He said in particular there is a large amount of resting liquidity around $1. Traders and market makers could pull XRP down to $1 or slightly below to trigger stop-loss orders and shake out weaker holders, he said. He interpreted such a move as the final liquidity-hunt zone before a stronger rally higher.

On the chart, support was presented at $0.95 to $1.00. It means the band could serve as a defensive line if selling pressure continues. XRP is currently trading at $1.13, down about 15 percent on the week.

The market is also watching the regulatory calendar. Arthur pointed to the U.S. Senate’s Clarity Act as a potential catalyst for XRP. With July 4 being mentioned as a target date for progress on the bill, he judged related developments over the next month could affect price. He said if regulatory clarity and an improved market structure combine, conditions favorable to XRP could be created after the current correction ends.

Market commentator @free_salaryKR shared a similar view. He called the $1 area a “psychological magnet” and argued a drop to that level could be a typical “liquidity hunt” that pushes impatient investors out of the market. He also assessed that a textbook setup showing potential for a reversal has formed as a break above the all-time-high trend line, Fibonacci support and the Clarity Act schedule converge.

Still, the short-term market environment remains weak. Total cryptocurrency market capitalisation fell 2.07 percent over the past 24 hours, and investor sentiment has sharply deteriorated. The Fear and Greed Index stands at 17, pointing to an extreme fear zone. CoinMarketCap’s Altcoin Season Index also fell 6.52 percent, suggesting funds are moving from altcoins such as XRP to relatively safer assets.

As a result, the key near-term focus for XRP is on support strength around $1 and whether selling pressure persists. If the $0.95 to $1.00 band holds, it could add momentum to a subsequent rebound attempt. If broader risk-off flows continue, volatility testing that band could increase.

XRP at $1.16. Let me show you what I actually see. Weekly Fibo 0.786, already touched. Twice. Descending trend line from ATH, already broken. $1.00 still sitting there. Full of liquidity. My read : the market is going to hunt that $1.00. Maybe slightly below. Just enough to… pic.twitter.com/yD0wvGtN74