XRP Loses Key 200-Day Support as Price Risks Further Drop Toward $1

In Brief:

• XRP dropped below its 200-day moving average as the Binance security breach intensified selling pressure across the cryptocurrency market.
• Traders are monitoring XRP’s weekly support, with potential downside targets at $1 and $0.98, while recovery could reach $1.70.
• Binance allocated $6.34 billion to restore affected customer assets, including XRP and RLUSD, reporting full reserve backing for both cryptocurrencies.

XRP has fallen below its 200-day moving average, marking its first sustained break beneath the technical indicator since August 2026. The decline follows widespread cryptocurrency losses triggered by Binance’s $6.3 billion security breach and growing economic uncertainty.

The cryptocurrency dropped to $1.19 on Friday, extending losses that began during Thursday’s market downturn. Despite a subsequent rebound, XRP remained below its 200-day moving average, leaving another important support level under pressure.

XRP Breaks 200-Day Moving Average Following Binance Hack

XRP’s latest decline marks a significant change in its technical position following several attempts to maintain higher price levels. TradingView data shows that the cryptocurrency briefly crossed below its 200-day moving average during September and October.

Previous declines lasted only briefly, allowing XRP to recover above the indicator before sellers gained greater control.

Thursday’s downturn intensified selling pressure following reports of a major security breach involving cryptocurrency exchange Binance. The incident reportedly affected approximately $6.3 billion in customer assets, including nearly $300 million worth of XRP.

Following the disclosure, XRP declined to $1.22 and crossed below its 200-day moving average. Selling pressure extended into Friday, pushing the cryptocurrency to $1.19 before buyers supported a partial recovery.

Source: TradingView

Meanwhile, economic developments added pressure across financial markets as investors assessed the Federal Reserve’s latest monetary policy decision. The central bank maintained its benchmark interest rate, while inflation figures showed persistent price pressures.

The personal consumption expenditures price index increased 0.5% monthly and 3.6% annually, exceeding the Federal Reserve’s 2% inflation target. These developments coincided with broader cryptocurrency losses as investors evaluated economic conditions and market risks.

XRP Faces Critical Weekly Support Test as $1 Becomes Possible

XRP’s inability to reclaim its 200-day moving average has increased the importance of another technical support level. Traders are monitoring the 50-week moving average, which remains an important indicator of the cryptocurrency’s broader price direction.

A sustained breakdown beneath this weekly support could expose XRP to additional losses toward the $1 psychological level. Further selling pressure could push the cryptocurrency toward $0.98 if buyers fail to defend the remaining support area.

Conversely, maintaining support around the 50-week moving average could preserve the possibility of a broader price recovery. Under this scenario, XRP could eventually target $1.70 if buying activity strengthens and the cryptocurrency regains lost ground.

Additionally, investors are preparing for the October nonfarm payrolls report, scheduled for Friday. The employment figures could influence expectations surrounding future Federal Reserve interest rate decisions and cryptocurrency market performance.

Binance Allocates $6.34 Billion to Restore Customer Assets

Binance has outlined financial measures to address customer losses following the security breach that disrupted cryptocurrency markets. Exchange co-founder Yi He confirmed that Binance allocated approximately $6.34 billion from company funds to restore affected cryptocurrency holdings.

The allocation covers several digital assets, including XRP and Ripple’s RLUSD stablecoin, alongside other major cryptocurrencies. Binance reported that these assets had achieved 100% reserve backing following the company’s recovery measures.

The exchange’s response comes as XRP struggles to recover from the selling pressure associated with the security incident. Market participants are also monitoring whether the restoration measures will help stabilize conditions across affected cryptocurrency markets.

XRP’s next technical test centers on defending weekly support and recovering above its 200-day moving average. Failure to maintain support could increase downside risks toward $1, while renewed buying activity could support a recovery toward $1.70.