XRP Price Forecast: Ripple approaches oversold levels as traders assess buying opportunities

• $1.20 remains XRP’s trading level. A wider crypto sell-off continues as growing concerns over US regulation pressure the market.
• Despite $22 million in liquidations over 24 hours as XRP falls, futures Open Interest climbs to 2.33 billion XRP, pointing to stronger retail demand.
• Overhead moving averages and bearish momentum signals continue to constrain XRP’s technical outlook.

$1.20 remains the structural ceiling for Ripple (XRP). Selling has erased the early-week advance to $1.34 driven by the United States (US) midterm elections. Ahead of the Democrats taking control of Congress in January, regulatory worries prompted many market participants to reposition and rebalance their portfolios.

XRP under pressure from US regulatory uncertainty

With Democrats due to take control of the House and Senate in January, uncertainty over the future of US crypto regulation is intensifying. These concerns among market participants continue to create mounting headwinds for the broader cryptocurrency market.

Senator Elizabeth Warren is set to chair the Senate Banking Committee, according to a Wall Street Journal report published on Thursday. Expectations are that Warren will push for tighter crypto regulation and consumer protections for crypto entities.

Investigations into alleged insider trading in prediction markets may also feature among Warren’s early priorities, the report notes. Another potential focus is assessing alleged conflicts of interest involving US President Donald Trump and his family. Warren has not yet been confirmed as Senate Banking Committee Chair, but observers see little prospect of another candidate taking the role.

In an opinion piece published in Time on Thursday, Senator Warren wrote: “Democrats won this election by claiming we are on the side of working people, and working people are counting on us to deliver,”

$22 million in XRP derivatives liquidations

XRP derivatives liquidations total $22 million over the last 24 hours as of Friday. The wider cryptocurrency sell-off has inflicted losses on many traders, particularly in derivatives. Long positions account for the heaviest losses, with roughly $21 million liquidated, against nearly $1 million for shorts. If long liquidations persist, forced selling and self-reinforcing price declines could deepen the correction.

Once excess leverage has been removed, however, fading speculation could allow XRP to stabilise or rebound sharply. Bears should therefore moderate their expectations. Retail traders nevertheless appear to be using the decline to build leveraged exposure: perpetual futures Open Interest (OI) increased to 2.33 billion XRP on Friday from 2.28 billion XRP a day earlier. Further improvement in risk appetite could provide enough support for a short-term XRP recovery towards resistance at $1.30.

$1.20 XRP technical analysis: sellers keep control

At $1.20, XRP retains a bearish bias, trading firmly below all key Exponential Moving Averages (EMAs) and the Bollinger Bands’ midline. Overhead resistance comes from the 50-day Exponential Moving Average (EMA) at $1.33, the 100-day EMA at $1.32 and the 200-day EMA at $1.36, maintaining a downside-oriented structure. Negative territory also continues to contain the Moving Average Convergence Divergence (MACD) indicator. Meanwhile, the Relative Strength Index (RSI) sits near 35, signalling sustained selling pressure that has not yet reached an extreme.

Just above the spot price, the lower Bollinger band around $1.20 forms the nearest resistance, with the Bollinger midline near $1.29 next. Beyond that, a concentrated technical barrier comprises the 100-day EMA at $1.32 and the 50-day EMA at $1.33. Further resistance lies at the 200-day EMA at $1.36 and the upper Bollinger band near $1.37.

Until the pair recovers the $1.29-$1.33 resistance zone, further downside would likely remain a risk. The daily chart shows no clear structural support beneath the current price.

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