XRP rebounds 11 percent to $1.20 after recent selloff

After weeks of steep selling pressure, XRP is beginning to show early signs of a limited rebound. The price fell below its 50-day exponential moving average and, after losing support at $1.32, dropped as low as the $1.10 zone. The latest movement stands out as the strongest reaction attempt since the onset of this downward trend.

First major reaction since the selloff

XRP started climbing again after a sharp decline took it close to a local low of $1.08. With buyers stepping in aggressively, a structure of higher lows has emerged, bringing the price back toward $1.20. Although modest compared to previous rallies, this movement represents the first significant positive reaction since the short-term trend broke down.

Technical indicators also suggest that the selling pressure may be waning. The Relative Strength Index has rebounded strongly from the oversold region back to neutral levels. Historically, when similar patterns emerged—especially after broad liquidations—XRP has seen brief relief rallies.

On-chain activity attracts attention

Another noteworthy aspect of the price movement has been relatively robust network activity on the XRP Ledger. On-chain data shows transaction volume remains well above levels typically associated with network weakness. The number of payments processed also stayed high throughout the correction.

For context: The XRP Ledger is the blockchain-based payment network that underpins XRP, enabling diverse asset transfers, payments, and transactions.

While transaction activity and payment counts have cooled slightly in recent days, the decline in network usage has been less pronounced than the price drop. This divergence suggests that even with weakened market sentiment, core activity on the XRP Ledger persists.

Key resistance ahead at $1.22 to $1.23

From a technical standpoint, the first important resistance facing XRP is the $1.22 to $1.23 range, which previously functioned as support. This zone now acts as a nearby barrier and coincides with the cluster of short-term moving averages. Regaining this range could signal a healthier market structure and bring the $1.32 level back into focus.

Despite these developments, caution still prevails. XRP is trading below its 50, 100, and 200-day moving averages, all of which point downwards. Still, the recent rebound suggests buyers are mounting a more visible response to the intense selling pressure seen in recent weeks.

Whether these crucial resistance levels can be retaken in the coming sessions will decide if this upward move becomes a sustainable recovery or remains just a short-lived relief rally.

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