XRP bulls reclaim $1.27, but $1.32 resistance threatens recovery

Key takeaways

• XRP has advanced 2% in the last 24 hours, bouncing back from the $1.20 support zone.
• Two XRP Ledger proposals—Single Asset Vault (XLS-65) and Lending Protocol (XLS-66)—have secured 60% and 54% validator support, respectively.
• XRP must clear the $1.32 resistance level to solidify a bullish trend and push toward $1.40.

XRP has staged a sharp rebound, gaining 2% over the past day as buyers step back in following a recent sell-off across the cryptocurrency market.

This recovery has pushed XRP back above the critical $1.26 threshold, which temporarily gave way when a $6.3 billion security breach at Binance triggered heavy market-wide selling.

Trading activity has picked up alongside the price action, with 24-hour volume jumping nearly 30% to roughly $1.8 billion.

Even so, the bounce has not yet sparked a major round of short liquidations, indicating that XRP has yet to break key resistance barriers required to validate a lasting bullish reversal.

XRP rebounds from $1.20 following Binance hack

The latest uptick in XRP comes on the heels of a challenging stretch for digital assets. The token fell toward $1.20 following the Binance security incident, sinking to price levels last reached on August 20.

The event fueled broader security concerns surrounding crypto exchanges, prompting significant capital outflows from Binance as traders adjusted their risk exposure.

As market confidence gradually restored, XRP reclaimed $1.26, restoring a price area that had previously acted as support during the recent market slide.

Higher trading activity accompanied the bounce, with daily volume reaching approximately $1.8 billion—accounting for more than 2% of XRP’s total circulating market cap.

Macroeconomic forces may also be offering a tailwind to XRP’s recovery. West Texas Intermediate (WTI) crude oil dipped below $100 per barrel for the first time since October 15, despite ongoing geopolitical friction involving the U.S. and Iran.

Lower energy costs can help relieve broader inflationary pressures throughout the economy.

If oil prices remain suppressed, it could also influence expectations ahead of the Federal Reserve’s December interest rate announcement.

An easing inflation outlook could reduce pressure on central bankers to hike interest rates, boosting investor appetite for risk-sensitive assets like cryptocurrencies.

XRP Ledger lending proposals gain validator support

In addition to macroeconomic tailwinds, upcoming developments on the XRP Ledger could reinforce XRP’s medium-term valuation.

A pair of network amendments designed to bring native lending functionality to the blockchain are gaining steady traction among network validators.

The first amendment, XLS-65, introduces Single Asset Vaults to facilitate lending-related features on the XRP Ledger.

XRPScan data shows that this proposal has reached approximately 60% validator approval. That leaves it 20 percentage points shy of the 80% threshold required for activation, which is also subject to standard network activation conditions.

The second proposal, XLS-66, outlines the Lending Protocol itself. It currently stands at roughly 54% validator backing, placing it further away from the required approval target.

These two proposals are closely interconnected, as the proposed lending architecture relies directly on the underlying framework provided by Single Asset Vaults.

Should XLS-65 achieve the necessary approval, validators may be more inclined to pass XLS-66, though approval for either amendment remains uncertain.

Together, the initiatives could broaden the XRP Ledger’s decentralized finance footprint by unlocking new lending applications.

XRP reclaims $1.27 as RSI signals bullish momentum

On the four-hour chart, XRP demonstrates improving short-term momentum after finding a floor around $1.20.

The digital asset has reclaimed $1.27, a level that functioned as support prior to the Binance-induced sell-off.

Reclaiming this benchmark is a positive sign, signaling that buyers are actively trying to rebuild a short-term bullish market structure.

The four-hour Relative Strength Index (RSI) sits near 64. An RSI value above 50 typically signals accelerating bullish momentum, whereas a reading above 70 indicates that an asset may be entering overbought territory.

While trading volume has expanded, XRP still requires greater market participation to penetrate overhead resistance levels where sellers previously clustered.

The next major challenge for buyers is the resistance zone at $1.32. A decisive move above this hurdle would strengthen the near-term bullish thesis and suggest the current rally is transforming into a broader recovery.

Sustained buying momentum could push XRP further toward the $1.40 target. However, $1.32 could see renewed selling pressure from market participants seeking to break even following the recent dip.

A rejection at $1.32 might prompt a pullback toward $1.26. If $1.26 fails to hold, the next key support sits near $1.20, where buyers previously emerged following the Binance sell-off.

Below $1.20, traders are keeping an eye on potential support zones at $1.14 and $1.08, which mark fair value gaps (FVGs) on the four-hour timeframe.