XRP concluded October with a significant downturn, losing approximately 19% of its value. The severe market retreat was largely driven by the repercussions of a $6.3 billion security breach at the Binance exchange. This incident not only exerted downward pressure on XRP but also affected the broader cryptocurrency market. Nonetheless, robust buying surged at the lower levels, reshaping the short-term support zone.
Narrow Trading Range Highlights Local Bottom
Currently, XRP is navigating a narrow trading band around $1.25, signaling a test of its local bottom. Derivative market data indicates that XRP’s price is compressed between distinct levels, with $1.2292 emerging as a critical threshold for long positions. According to CoinGlass, there’s a 54% chance of this level being tested within 24 hours.
Meanwhile, short positions amassed around $1.4292 are suppressing upward movements. Furthermore, the market witnessed a significant reduction in excess leverage, as $37.6 million in long positions were liquidated over the course of October.
Technicals Outline Key Support Zone
Data from TradingView reinforce the significance of XRP’s current threshold. On a weekly scale, XRP is trading above the 200-week moving average, situated in the $1.25 to $1.28 range, an area previously highlighted during the surge that began in August.
The daily oscillator dropping to 36.85 suggests market weakness. Historically, descents into such oversold territories have been followed by recovery trends. However, this requires buyers to sustain the present support level.
CoinGlass data confirms the critical nature of $1.2292 in the short term, while the upper resistance remains around $1.4292 due to accumulated short positions.
Pressures from RLUSD and ETF Developments
Additional pressure stems from Ripple‘s RLUSD initiative, highlighted during its Swell conference. Intended to expand Ripple’s footprint in institutional products, including custodial services, this move is perceived to have curtailed direct demand for XRP in the short term. Ripple, a U.S.-based fintech company, is renowned for its cross-border payment technologies and digital asset solutions.
In the U.S., total assets of XRP ETFs saw a decline, oscillating between $1.42 billion and $1.47 billion, as new fund entries remained negligible. This points to an absence of a robust new buying wave on the institutional front.
The $1.20 to $1.25 range continues to be a pivotal support for XRP; the rapid buying response to the Binance-induced plunge indicates sustained demand in this zone.
Key Levels to Monitor
Should the buyers maintain the $1.2292 line and push the price above the daily average of $1.3145, the current region might be confirmed as a local bottom. Conversely, a dip below $1.20 could reactivate the August lows within the $0.98 to $1.00 band.
