Is XRP’s rebound likely? Why traders watch the $1.26 support zone

The spot ETF flows to Ripple [XRP] ended the previous week fairly strongly. On the 21st and 22nd of May, the inflows totaled $18.35 million. This figure slowed down to just $1.55 million on the 26th of May. At the same time, the crowd FUD was the highest it had been in three weeks, a recent AMBCrypto report found. This level of fear has often acted as a contrarian signal. The higher levels of skepticism generally coincide with seller exhaustion, which can set the stage for a price rebound. The report also noted that institutional conviction in XRP remained strong. Using the 30-day liquidity index on Binance, it indicated that sell-side liquidity was thinning out. The combination of spot ETF inflows and high fear levels means investors can expect an XRP rebound in the coming days. The price action showed where this could be possible and when these recovery hopes can be considered dashed. Exploring the XRP buying opportunity On the 1-day price chart, a range formation revealed itself. Extending from $1.31 to $1.54, the range had been in place since late February. XRP was approaching the lows once again, and it was likely to see a bullish reaction. The OBV was a distance away from the April low, which was when the altcoin previously tested the range low. The RSI reflected the bearish momentum of the past two weeks. The 3-month liquidation heatmap highlighted a strong magnetic zone around $1.26. Lying just below the range low, the cluster of long liquidations here was highly likely to pull XRP prices lower in the short term. Yet, after a sweep of this liquidity pocket, it is possible that XRP could rebound higher toward the opposite end of the range. It was tricky to be exactly sure of when the bulls had lost control and the bears would commence another leg downward. As things stand, a daily session close at or below the $1.26-$1.28 area would be a warning sign to the bulls. In that case, the chances of a positive reaction at the range-low would be dramatically reduced. Final Summary The institutional conviction and the thinning seller liquidity highlighted in an earlier report suggested XRP could see a rebound soon. The liquidation heatmap outlined a key long liquidity cluster that could be visited before a bounce, but also helped give clarity to the invalidation of the bullish idea.