XRP dropped below its 200-day moving average for the first time since August 2026, signaling a period of technical weakness. Previous dips below this level in recent months were brief, with the asset quickly recovering. However, this week’s decisive decline has drawn renewed attention from market participants.
Binance hack and market impact
The downturn in XRP intensified after Binance, one of the world’s largest cryptocurrency exchanges, reported a security breach involving nearly $300 million in XRP. The incident formed part of a wider attack in which total estimated losses reached $6.3 billion across client assets. Binance’s confirmation of the breach, which is considered the largest theft in the history of the cryptocurrency sector, triggered broad price declines across major digital assets.
On Thursday, XRP’s price fell sharply, touching a low of $1.22 and failing to hold the 200-day moving average. The selling pressure continued into Friday, reaching $1.19 as investors digested the fallout from the hack alongside macroeconomic developments.
| Event | Value | Impact on XRP |
|---|---|---|
| Binance hack (XRP affected) | $300 million | Price drop below 200 DMA |
| Total assets lost (all crypto) | $6.3 billion | Wider market sell-off |
| Friday’s XRP low | $1.19 | Continued weakness |
The Federal Reserve’s recent decision to keep its key interest rate unchanged, combined with Thursday’s release of the personal consumption expenditures price index showing a 0.5% monthly increase and 3.6% annual rise, further pressured financial markets. These inflation figures surpassed the Fed’s 2% target and added to the volatility in risk assets like cryptocurrencies.
Traders monitor technical levels
Despite the recovery attempts, XRP remained below its 200-day moving average at the time of reporting. Technical analysts highlighted ongoing concerns about the cryptocurrency’s momentum.
Market observers are now focused on whether XRP can hold above its weekly support at the 50-week moving average. A sustained drop below this support could see the token testing the $1.00 or $0.98 levels. If support is maintained, analysts say a move toward $1.70 is possible in the coming weeks.
XRP’s breach of the 200-day moving average does not necessarily rule out a recovery, but investors are increasingly looking to the 50-week moving average for cues on the next direction.
Meanwhile, broader financial markets are turning attention to upcoming October nonfarm payrolls data, expected to be released Friday, which could impact investor sentiment.
Binance updates user reserves
Binance, co-founded by Yi He, announced it allocated $6.34 billion from its corporate funds to acquire major cryptocurrencies, including XRP and RLUSD, bolstering its user asset reserves.
The company reported that user holdings in XRP and RLUSD, along with other large cryptocurrencies, now benefit from 100% reserve backing as part of its latest transparency measures.
Mini dictionary: RLUSD, or Real USD, is a stablecoin designed to maintain a value pegged to the US dollar. Stablecoins like RLUSD are commonly used in digital asset trading for minimizing volatility and providing a reliable unit of exchange.
Binance’s latest reserve audit confirmed full backing for user assets after the recent security breach, aiming to boost client confidence across its supported cryptocurrencies.
