XRP rebounds to $1.30 as exchange reserves hit 11.81 billion

XRP has staged a moderate rebound, rising 2.15% in the past 24 hours to trade at $1.30, following an increase in ledger activity and a decisive recovery above the $1.28 support level. The token’s short-term prospects have drawn attention as analysts and traders watch key price zones and on-chain developments.

XRP support levels and analyst outlook

Ali Charts, a market analyst known for tracking digital asset markets, identified $1.25 as a potential bottom for XRP after on-chain transaction values surged to $49.7 billion. This uptick in network activity coincided with the token’s rebound from oversold conditions.

XRP’s transaction volume on its public ledger soared while prices hovered near the $1.25 support, with the total value of on-chain movements reaching $49.7 billion. This pattern aligned with the ongoing market recovery.

Data from CoinMarketCap shows XRP sustaining gains at $1.30, up 2.15% on the day. The token’s relative strength index (RSI), which measures price momentum, registered at 36.94, reflecting a recovery from its recent slide and holding just above the 200-day moving average of $1.28.

Trading volume grew by 48% over the previous day, suggesting increased market engagement. However, analysts cautioned that a bounce from oversold levels does not guarantee a long-term reversal and stated that XRP must maintain support above $1.28 while attracting sustained demand to bolster its bullish outlook.

XRP exchange reserves reach yearly high

Research firm CryptoQuant reported aggregate XRP exchange reserves rose to 11.81 billion on October 17, placing them in the 99th percentile for the past year. High reserves typically indicate a substantial amount of tokens available for trading on exchanges, yet this metric does not reveal holders’ intentions regarding potential sales.

“For now, the clearest reading is that leverage has reset faster than exchange supply has,” according to CryptoQuant analyst CryptoOnchain, commenting on the shift in trading dynamics.

Open interest in XRP futures on Binance, the world’s largest cryptocurrency exchange by trading volume, dropped from $538.1 million on October 4 to $453 million on October 17, marking a 15.8% decrease. During this period, long liquidations amounted to $25.7 million as XRP prices fell from $1.52 to $1.29.

Binance’s leverage ratio in XRP trading fell from 0.205 to 0.170, and funding rates remained negative on more than half of the observed days, suggesting the rapid unwinding of leveraged bullish positions.

Although aggregate exchange reserves hit a high, Binance’s specific reserves remained low at 2.67 billion XRP, just the 30th percentile over the year. This indicates that most of the reserve build-up occurred on other platforms.

Mini dictionary: Open interest, a measure of outstanding futures or options contracts, reflects the number of active positions that have not been settled. Changes in open interest help gauge trader conviction and overall market sentiment.

XRP price outlook and potential resistance

Market focus now shifts to whether XRP can maintain its foothold above the $1.28 support level. A sustainable move above this mark could bring resistance at $1.34 and $1.40 into play, with further upside potential toward $2 if momentum continues.

Analyst XRP Update identified a key weekly support range between $1.22 and $1.34. If buyers defend this zone, price targets of $1.50 to $1.70 are possible, with long-term resistance at $2.09 and $2.32. These targets remain conditional on continued demand and favorable technical developments.

CryptoQuant data indicated that whale trading volume—representing large-scale transactions—fell by 44% week over week, while the number of tokens transferred declined by 37%. This reduction in major transactions underscores investor caution amid recent volatility.

Despite short-term signs of recovery, elevated exchange reserves and lower on-chain activity suggest that XRP’s broader trend remains uncertain for now.