XRP is now trading below its 200-day moving average for the first time since August 2026. Although there were instances in mid-September and October where it momentarily slipped beneath this crucial technical level, these dips were brief, and XRP did not remain in the lower range for long.
Binance Breach Intensifies Market Pressure
On Thursday, the steep decline in XRP’s value coincided with reports of a security breach affecting Binance. Approximately $300 million worth of XRP was implicated in the incident, escalating selling pressure in the market. This breach, impacting a total of $6.3 billion in customer assets, is considered one of the largest thefts in the history of crypto assets.
Yi He, Binance’s co-founder, announced that the company allocated $6.34 billion from its own resources to purchase significant crypto assets, including XRP and RLUSD.
Following these developments, XRP plummeted to $1.22 on Thursday and subsequently fell below its 200-day average. This downward trend continued into Friday, with prices hitting $1.19. Although a limited recovery occurred, XRP has yet to reclaim its position above the 200-day average.
Impact of Macro Data and Fed Decisions
The market weakness is not solely attributed to the security reports. On Thursday, the U.S. reported increases in the personal consumption expenditures price index by 0.5% monthly and 3.6% annually, remaining above the Federal Reserve’s 2% target. These figures were released just after the Fed’s decision to hold interest rates steady earlier in the week.
Investors are weighing both their concerns about security risks in the crypto market and the implications of the Fed’s interest rate policies. Upcoming labor data, especially the nonfarm payroll report scheduled for release on Friday, could be crucial in determining the direction of risk assets.
Technical Levels Under Scrutiny
XRP’s dip below the 200-day average raises questions about its short-term momentum, although it does not necessarily rule out a potential recovery. The market’s primary focus is on whether XRP can maintain its ground above the 50-week moving average on the weekly chart.
Should this level hold, XRP might target $1.70 once more. Conversely, losing this weekly support could lead to potential retracements to $1.00 and $0.98.
Reserve Support Emerges
In a recent update, Binance announced that reserve support for major crypto assets, including XRP and RLUSD, had reached 100%. RLUSD is a stablecoin linked to the Ripple ecosystem and is designed to maintain parity with the U.S. dollar.
It has been reported that major crypto assets, including XRP and RLUSD, within Binance’s user fund, have reached a 100% reserve support level.
