XRP staged a sharp rebound on Friday, gaining roughly 15% to trade around $1.30–$1.40, recovering from a nearly 20% weekly decline that had pushed the token to its lowest level since November 2024. The broader crypto market remained under mild pressure during this period.
Oversold conditions attract bargain buyers
Market data shows XRP had entered deeply oversold territory during the recent sell-off. This prompted aggressive bargain buying, with trading volumes spiking as spot demand returned after leveraged long positions were largely cleared. Such technical bounces are common once forced selling exhausts itself.
Liquidations and escrow release amplify swings
Earlier losses were amplified by approximately $40 million in long liquidations, which accelerated the decline during thin liquidity windows. Meanwhile, Ripple's scheduled release of about 300 million XRP tokens from escrow temporarily increased circulating supply, adding further downside pressure.
The combination of forced deleveraging and extra token supply drove XRP to intraweek lows near $1.00 before buyers stepped in, revealing strong support at that psychological level.
Mixed outlook: temporary floor or dead cat bounce?
Traders remain divided on the near-term direction. Some analysts suggest the rebound could mark a temporary price floor after the correction, with a hold above $1.29 possibly allowing further gradual gains. A break below that zone could trigger another test of recent lows.
Analyst EGRAG Crypto outlined his approach: he stays positive on XRP if the price reclaims $1.85, a move he believes could open the path toward $2.20. A confirmed breakout above $2.50, he added, would require a fresh structural reassessment.
On the downside, EGRAG Crypto said his position is deliberately small enough that he is comfortable continuing to hold it if XRP drops below $1.28, treating that level as a risk management boundary rather than a hard stop.
The current price action leaves XRP in a tug-of-war between oversold momentum and overhead resistance. Whether the token can hold $1.29–$1.30 in the coming sessions will likely dictate the rebound's durability, while a push above $1.85 would signal a potential trend shift.