Key takeaways
- XRP has gained 2% over the past 24 hours, rebounding from the $1.20 support area.
- XRP Ledger’s proposed Single Asset Vault (XLS-65) and Lending Protocol (XLS-66) have attracted validator support of 60% and 54%, respectively.
- XRP must break above $1.32 to strengthen its bullish outlook and potentially target $1.40.
XRP has rebounded sharply, gaining 2% over the past 24 hours as buyers return following last week’s cryptocurrency market sell-off.
The recovery has pushed XRP back above the important $1.26 level, which briefly gave way after the $6.3 billion Binance security breach triggered widespread selling pressure.
Trading activity has also improved, with daily volume rising nearly 30% to approximately $1.8 billion.
However, the rebound has yet to trigger a significant wave of short liquidations, suggesting that XRP has not broken through the resistance levels needed to confirm a sustained bullish reversal.
XRP rebounds from $1.20 following Binance hack
XRP’s latest recovery follows a difficult period for the broader cryptocurrency market. The token dropped toward $1.20 after the Binance hack, reaching a price area last visited on August 20.
The incident sparked concerns about cryptocurrency exchange security and prompted substantial withdrawals from Binance as investors reassessed their exposure.
As confidence gradually improved, XRP recovered above $1.26, reclaiming a level that previously served as support during the recent decline.
The rebound has been accompanied by increased trading activity. Daily volume has climbed to approximately $1.8 billion, accounting for more than 2% of XRP’s circulating market capitalization.
Broader macroeconomic conditions may also be contributing to XRP’s recovery. West Texas Intermediate (WTI) crude oil fell below $100 per barrel for the first time since October 15, despite continuing geopolitical tensions involving the United States and Iran.
Lower oil prices can help ease inflation concerns by reducing energy-related costs across the economy.
If the decline persists, it could also influence expectations for the Federal Reserve’s December interest rate decision.
A more favorable inflation outlook may reduce pressure on policymakers to raise borrowing costs, potentially improving sentiment toward risk-sensitive assets such as cryptocurrencies.
XRP Ledger lending proposals gain validator support
Beyond the broader market recovery, developments within the XRP Ledger could provide additional support for XRP’s medium-term outlook.
Two proposed amendments designed to introduce native lending capabilities are attracting growing support from network validators.
The first, XLS-65, would introduce Single Asset Vaults, a feature intended to support lending-related functionality on the XRP Ledger.
According to the supplied XRPScan data, the proposal has reached approximately 60% validator approval. That places it 20 percentage points below the 80% threshold required for amendment activation, although meeting the threshold must also satisfy the network’s applicable activation conditions.
The second proposal, XLS-66, focuses on the Lending Protocol itself. It currently has approximately 54% validator support, leaving it further from the required approval threshold.
The two proposals are closely related because the proposed lending functionality would depend on the infrastructure provided by Single Asset Vaults.
If XLS-65 gains sufficient support, validators may be more inclined to approve XLS-66, although neither outcome is guaranteed.
Together, the proposals could expand the XRP Ledger’s decentralized finance capabilities by introducing new lending-related use cases.
XRP reclaims $1.27 as RSI signals bullish momentum
XRP’s four-hour chart shows improving short-term momentum following its rebound from the $1.20 area.
The token has reclaimed $1.27, a level that previously acted as support before the Binance-related sell-off pushed prices lower.
Recovering this area is an encouraging development because it suggests buyers are attempting to rebuild the market’s short-term bullish structure.
The Relative Strength Index (RSI) on the four-hour chart currently stands near 64. An RSI reading above 50 generally indicates that bullish momentum is strengthening, while a move above 70 can suggest that an asset is becoming overbought.
Although trading volume has increased, XRP still needs stronger participation to overcome resistance levels that previously attracted selling.
The next major challenge for XRP buyers is the resistance level at $1.32. A decisive breakout above this area would strengthen the short-term bullish outlook and suggest that the recent rebound is developing into a more sustained recovery.
If buying momentum continues, XRP could extend its advance toward $1.40. However, the $1.32 level may attract renewed selling from traders looking to exit positions after the recent decline.
A rejection at this resistance could trigger another pullback toward $1.26. If that level fails to hold, the next important support lies near $1.20, where buyers previously stepped in following the Binance-related sell-off.
Below $1.20, traders will be watching potential demand zones around $1.14 and $1.08. These areas correspond to fair value gaps (FVGs) identified on the four-hour chart.
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