XRP price is testing the $1.20 support level following profit-taking activity that occurred near $1.25. The cryptocurrency is currently trading around $1.24 after a recent surge above $1.20, driven by renewed interest from buyers in large-cap altcoins. However, the price faced a quick pullback as sellers emerged near the resistance zone.
The recent upward movement in XRP’s price was bolstered by increased demand from Asian markets and fresh inflows into XRP exchange-traded funds (ETFs). Notably, South Korean exchange Upbit reported a significant rise in XRP-related trading activity, contributing to a boost in market confidence during this rebound.
Traders are now closely monitoring the $1.20 level as crucial for maintaining the short-term structure of XRP. A failure to hold above this price could lead to another test of support levels.
After defending lower levels around $1.14, XRP’s price rallied sharply, reaching levels between $1.27 and $1.30, which has now become a primary resistance area. This rejection of price near the $1.30 mark is a typical behavior as traders often take profits at previous breakdown zones, which in XRP’s case aligns with significant technical barriers.
Analysis from EGRAG Crypto highlighted that the $1.19 and $1.26 levels are critical to watch. XRP successfully reached these targets but faced rejection, with the ongoing analysis suggesting that $1.19 remains a key threshold for potential buyers. Failure to maintain this level could indicate a weakening rebound, with further declines below $1.14 potentially allowing sellers to regain control.
The intraday trading range for XRP has displayed high volatility, fluctuating between $1.18 and $1.29, reflecting demand and the propensity for profit-taking among traders.
Demand for XRP ETFs continues to be a significant narrative in the market. Recent inflows into products from Bitwise and Franklin have drawn attention from traders, as ETF flows typically signify institutional demand, which can decrease the market supply when funds accumulate exposure. However, it is important to note that ETF demand alone may not suffice to prevent short-term price pullbacks.
Asian market activity has played a vital role in the recent price movement, with Upbit reportedly responsible for a considerable share of XRP wallet flows. This indicates that South Korean traders are instrumental in the ongoing breakout.
Positive sentiment among top traders on platforms such as Binance has further reinforced bullish outlooks. Reports indicate that approximately $6 million to $7 million in XRP short positions were liquidated within a 24-hour period, a development that can accelerate price rallies but may also fade once forced buying diminishes. Thus, the $1.20 support level remains critical at this juncture.
Speculation surrounding a potential XRP ETF from BlackRock has resurfaced, spurred by comments from Jake Claver, Chairman of the Digital Ascension Group. Claver expressed expectations that BlackRock could eventually file for a spot XRP ETF, linking this outlook to growing institutional interest in the XRP Ledger.
Despite the lack of a formal announcement regarding a spot XRP ETF filing from BlackRock, the speculation has attracted attention, particularly as institutions explore blockchain settlement tools. According to Odelia Torteman, director of XRPL Commons, major firms including BlackRock, Mastercard, and Franklin Templeton have evaluated the XRP Ledger for potential use cases involving tokenization, payments, and regulated settlements.
Ripple has also taken steps to enhance the institutional presence of the XRP Ledger since 2025, implementing initiatives such as RLUSD settlement pilots and tokenized lending, which are pivotal for broadening XRP adoption. Additionally, the anticipated XRPL 3.2.0 upgrade aims to enhance network speed and reliability, which could further support higher settlement volumes.
