XRP’s retreat toward $1 is testing whether one of the cryptocurrency market’s largest tokens can hold a level that has become increasingly important after months of declining prices.

Data from CryptoSlate shows that the digital asset fell to $1.02 on Friday, its weakest price since February, as a market-wide selloff prompted traders to reduce exposure to digital assets.

XRP recovered slightly afterward, but the rebound did little to dispel concerns that the decline may be entering a more damaging phase.

However, these Strains are emerging across several parts of the market. Leveraged positions are disappearing, derivatives activity has contracted, and investors who once waited for a recovery are increasingly moving their holdings at a…