XRP experienced a sharp decline to $1.32 this week, sweeping through a significant zone of sell-side liquidity before posting a rapid recovery to $1.40. The price action attracted close analysis from market participants and prompted traders to monitor whether the asset can sustain this reversal and reclaim higher levels in the coming sessions.
Key technical signals on XRP price
Analyst Xaif (@Xaif_Crypto) examined the situation using the 1-hour chart and highlighted two main technical indicators in his review: the BigBeluga Smart Money Concepts tool and the LuxAlgo Buyside and Sellside Liquidity indicator. These tools allow traders to pinpoint the positioning of major liquidity relative to price movements.
The major turning point came when XRP dropped below $1.32, after previously rallying above $1.50. This drop brushed aside several support levels, ultimately generating a Break of Structure signal at the $1.32 low. In response, the asset rebounded sharply, stabilizing around $1.40.
Multiple resistance areas now lie directly above, with supply zones mapped at $1.42, $1.47, $1.52, and $1.55. Each is marked by heightened seller activity, making them critical levels for bulls to challenge in upcoming sessions.
XRP swept sell-side liquidity near $1.32 before reversing and recovering to $1.40. A reclaim of $1.42 could open the path toward the $1.47 buy-side liquidity zone. The next move will depend on whether bulls can turn $1.42 from resistance into support.
Bulls face a crucial test at $1.42
Xaif identified $1.42 as the immediate level to monitor, stating that a convincing breakout above this resistance could clear the way toward the $1.47 buy-side liquidity area. The $1.47 zone has historical buy orders and marks a critical point where momentum could shift toward buyers.
He emphasized that XRP is currently hovering below $1.42, and bulls must establish a decisive move above this threshold. Sustaining that level after a breakout would further validate the setup and suggest further upside potential in the near term.
Institutional flows and on-chain dynamics
The technical outlook comes amid a backdrop of rising institutional engagement. Xaif reported that XRP spot ETFs recorded $8.17 million in net inflows on October 8. Overall, cumulative net inflows have reached $1.80 billion, while total net assets now stand at $1.56 billion. Trading volume for the latest period was $65.44 million. Many traders view these growing institutional allocations as providing additional justification for the technical case outlined above.
As traders track major resistance levels and monitor liquidity zones, the meme token market is demonstrating how rapidly online trends can reshape financial outcomes. For example, data from Fomo App highlighted a trade in the “Niu Lai” meme token that transformed a $99 investment into approximately $370,000. In this evolving environment, monitoring not just price action but also timing and asset selection is essential. Fomo App enables users to discover new tokens, analyze real-time social feeds, and track leading investors, offering a comprehensive source for those engaged with the latest meme token trends.
Outlook for XRP price movement
After clearing major sell-side liquidity at $1.32, XRP’s rebound to $1.40 sets a well-defined pathway for bulls. Market observers are now concentrating on whether the asset can reclaim and hold $1.42. If successful, the next significant area is $1.47, where further buy-side liquidity could be unlocked.
The technical structure remains clear and actionable: reclaim and defend $1.42, then target the $1.47 level as the next objective. Price reaction at these zones will determine the near-term direction for XRP traders.
