Ripple Price Forecast: XRP bulls hold the line at $1.20 as selling pressure sparks liquidations

• Binance’s $6.3 billion hack prompted a sharp sell-off, but XRP retains support within the $1.20-$1.25 range.
• Long position liquidations reached $16 million on Friday as XRP came under wider selling pressure.
• Despite signs of a recovery in XRP, the prevailing bearish structure continues to constrain price action.

A reported hack affecting approximately $6.3 billion on the Binance exchange triggered a steep sell-off, after which Ripple (XRP) staged a modest rebound. On Friday, the token trades around $1.25, up from short-term support established at $1.20.

With Binance halting deposits and withdrawals to contain the incident, the attack unsettled the wider cryptocurrency market. According to updates on X, roughly $3 billion has been frozen by Binance in conjunction with blockchain partners and law enforcement, while recovery work remains under way.

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,” adding, “This was a complex attack, and we are doing all we can in coordination with law enforcement to resolve it.”

XRP liquidations climb sharply

Nearly $24 million in XRP long positions were liquidated on Thursday, according to CoinGlass, compared with losses of just $892,000 for short position holders. XRP fell 8% that day as the wider cryptocurrency sell-off swept through the token, leaving many traders nursing losses.

Friday brought some respite from the sell-off, although long position liquidations remained high at $16 million, against approximately $1.7 million in short positions wiped out. Should support at $1.20 falter and open the door to further declines, bullish traders are likely to suffer most from the correction. Conversely, the balance could shift if the recovery sustains its momentum. It remains too early to judge either outcome; price action over the coming days should offer a clearer indication of the direction ahead.

Technical analysis: XRP maintains crucial support at lower levels

Following a modest rebound from recently tested support at $1.20, XRP is trading close to $1.25. The near-term outlook nevertheless remains distinctly bearish, with the price below every key Exponential Moving Average (EMA) and the current SuperTrend line. Overhead sit the 100-day EMA at $1.33, the 50-day EMA at $1.35 and the 200-day EMA at $1.37. Together, they suggest the pair remains constrained 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 of around 36 points to persistent downward momentum. Marginally negative and below zero, Moving Average Convergence Divergence (MACD) also indicates that sellers retain control, although the near-term decline may be losing pace.

The first resistance level is the 100-day EMA at $1.33, with the 50-day EMA at $1.35 and the 200-day EMA at $1.37 beyond it. This tightly grouped supply zone would have to be regained to temper the bearish bias. A break above those averages would bring the SuperTrend line at $1.41 into view as the next obstacle, followed by resistance from the broader downtrend near $1.60.

Until buyers lift XRP back above the cluster of moving averages, further declines remain a risk, as the daily chart’s current indicators identify no nearby structural support.

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