Ripple Price Forecast: XRP approaches oversold levels as traders look for buying opportunities

• At around $1.20, XRP holds its ground during a wider crypto sell-off as growing concerns over US regulation weigh on the market.
• Liquidations reach $22 million over 24 hours as XRP falls, yet futures Open Interest climbs to 2.33 billion XRP, pointing to stronger retail demand.
• Moving averages above the price and bearish momentum signals continue to constrain XRP’s technical outlook.

At close to $1.20, Ripple (XRP) remains constrained by its technical structure after selling erased the early-week advance to $1.34 sparked by the United States (US) midterm elections. Ahead of the Democrats taking control of Congress in January, regulatory unease prompted many market participants to reposition and rebalance their portfolios.

XRP comes under pressure from US regulatory unease

Concerns over the direction of US crypto regulation once Democrats take control of the House and Senate in January are adding to the headwinds facing the wider cryptocurrency market.

Senator Elizabeth Warren is poised to chair the Senate Banking Committee, according to a Wall Street Journal report published on Thursday. Expectations are that Warren will push for tougher crypto regulation and consumer protections for crypto entities.

Investigations into alleged insider trading in prediction markets may also feature among Warren’s early priorities, the report notes, alongside an assessment of alleged conflicts of interest involving US President Donald Trump and his family. Her appointment as Senate Banking Committee Chair has not yet been confirmed, although observers consider the chances of an alternative candidate to be slim.

In an opinion piece published in Time on Thursday, Senator Warren wrote: “Democrats won this election by claiming we are on the side of working people, and working people are counting on us to deliver,”

XRP derivatives see a surge in liquidations

Traders have suffered losses across the cryptocurrency market during the wider sell-off, with derivatives traders particularly affected. As of Friday, XRP derivatives liquidations total $22 million over the past 24 hours. Long positions account for the bulk of the damage, with roughly $21 million liquidated, compared with nearly $1 million in short positions. Should long liquidations persist, forced selling and self-reinforcing price declines could deepen the correction.

Once excess leverage has been removed and speculation subsides, however, XRP could stabilise or rebound sharply, giving bears reason to moderate their expectations. Retail traders nevertheless appear to be taking advantage of the decline: perpetual futures Open Interest (OI) has increased from 2.28 billion XRP the previous day to 2.33 billion XRP on Friday. A continued improvement in risk appetite could provide greater support for a short-term XRP recovery towards resistance at $1.30.

Technical analysis: Sellers keep control as XRP declines

With XRP trading at $1.20, the bearish bias persists as the price stays firmly below all key Exponential Moving Averages (EMAs) and the midpoint of the Bollinger Bands. Above the market, the 50-day Exponential Moving Average (EMA) stands at $1.33, the 100-day EMA at $1.32 and the 200-day EMA at $1.36, collectively reinforcing the downside bias. The Moving Average Convergence Divergence (MACD) indicator also remains below zero. Meanwhile, a Relative Strength Index (RSI) reading close to 35 suggests that selling pressure is sustained, though not yet extreme.

Just above the spot price, the lower Bollinger band around $1.20 provides the nearest resistance, with the bands’ midline near $1.29 next in view. Beyond that, the 100-day EMA at $1.32 and the 50-day EMA at $1.33 form a concentrated technical obstacle. Further resistance lies at the 200-day EMA of $1.36 and the upper Bollinger band near $1.37.

Until the pair recaptures the $1.29-$1.33 resistance zone, it is likely to remain exposed to further losses, as the daily chart shows no clear structural support below the current price.

(The technical analysis of this story was written with the help of an AI tool. Know more.)