Ripple Price Forecast: Can XRP bulls keep defending $1.20 as selling pressure sparks liquidations?

• Support for XRP holds in the $1.20-$1.25 range after Binance’s $6.3 billion hack sparked a steep sell-off.
• Selling pressure remains widespread for XRP, as liquidations of long positions reach $16 million on Friday.
• A prevailing bearish structure continues to constrain XRP’s price action despite signs of a recovery.

A modest rebound has lifted Ripple (XRP) towards $1.25 on Friday from short-term support established at $1.20. The recovery follows a steep sell-off amid reports that a hack on the Binance exchange affected approximately $6.3 billion.

Sentiment across the cryptocurrency market turned nervous following the attack, prompting Binance to halt deposits and withdrawals to contain the situation. According to updates on X, roughly $3 billion has been frozen by Binance, blockchain partners and law enforcement as recovery efforts proceed.

In a statement on X, Binance said, “Our initial investigation suggested that the security incident may have involved a compromised laptop, however our subsequent investigation has uncovered additional points of breach,” and added, “This was a complex attack, and we are doing all we can in coordination with law enforcement to resolve it.”

How severe are XRP’s liquidation losses?

Traders in XRP suffered substantial losses as the token dropped 8% on Thursday amid the wider cryptocurrency sell-off. Nearly $24 million in long positions were liquidated that day, according to CoinGlass, compared with losses of only $892,000 for holders of short positions.

Liquidations of long positions still total $16 million on Friday despite an easing in the sell-off, while approximately $1.7 million in short positions have been wiped out. Should support at $1.20 weaken and open the door to further declines, bullish traders will likely bear the largest share of the correction’s impact. Sustained momentum in the current recovery could, however, reverse that situation. It remains too early to judge either outcome; price behaviour over the coming days should offer a clearer indication of the direction ahead.

Technical analysis: Can XRP sustain its key lower support?

A modest bounce from recently tested support at $1.20 has brought XRP close to $1.25. Nevertheless, the near-term outlook remains distinctly bearish, with the token trading beneath every key Exponential Moving Average (EMA) and the prevailing SuperTrend line. Overhead resistance comes from the 100-day EMA at $1.33, the 50-day EMA at $1.35 and the 200-day EMA at $1.37. These levels suggest that the pair’s upside remains restricted following its recent retreat from the mid-$1.30s.

Further resistance to gains comes from the SuperTrend indicator at $1.41, while a Relative Strength Index (RSI) reading around 36 points to persistent downward momentum. The Moving Average Convergence Divergence (MACD) remains marginally negative, below zero. This indicates that sellers retain control, although the near-term downward pressure may be easing.

To reduce the bearish bias, XRP would need to regain a tightly packed supply zone comprising immediate resistance at the 100-day EMA of $1.33, followed by the 50-day EMA of $1.35 and the 200-day EMA of $1.37. Beyond that cluster, the next obstacle is the SuperTrend line at $1.41, before broader downtrend resistance near $1.60.

Further losses remain a risk until buyers lift XRP back above the moving-average cluster, as the current set of daily-chart indicators identifies no nearby structural support.

(The technical analysis of this story was written with the help of an AI tool. Know more.)