[DigitalToday reporter Jinju Hong] XRP is testing a key support line near $1.25, blockchain media outlet U.Today reported on Nov. 1 (local time).

XRP has fallen about 19% in October and is showing signs of building a local bottom in the $1.20 to $1.25 range.

The direct shock behind the decline was a $6.3 billion hack on the Binance exchange. The incident dampened investor sentiment across the broader cryptocurrency market, and XRP also failed to avoid a sharp drop. Still, an assessment says large buy orders flowed in near the lows, and liquidity maps now show signs of support forming.

The price level drawing attention is $1.2292. Based on Coinglass derivatives data, XRP’s spot price is holding around $1.2505, and a major long-position liquidation zone sits below that range. The probability of testing that price within the next 24 hours was put at 54%. On the upside, short positions have piled up near $1.4292, acting as resistance if prices rebound.

Market structure has become lighter than before. In October, $37.6 million in long positions was forcibly liquidated, clearing out a significant portion of excessive leverage. U.Today said XRP is effectively “pinned at the bottom,” and noted that the key long liquidation line at current prices is $1.2292.

Technical indicators also show the importance of the same range. On the weekly chart, XRP is trading in the $1.25 to $1.28 range, the 200-week moving average. The zone was also cited as the starting point of a sharp rise in August. The daily oscillator has fallen to 36.85. Citing past cases, U.Today reported that “entering such oversold territory appeared before an upward reversal.”

On the supply-and-demand side, changes that emerged after the Ripple Swell event also weighed on prices. As the new stablecoin RLUSD absorbed institutional products, including custody services for Coinbase and Robinhood, direct demand for XRP itself temporarily declined. Against that backdrop, the asset size of U.S. XRP ETFs adjusted to about $1.42 billion to $1.47 billion, reflecting only the token’s price drop, and inflows have effectively stalled at near zero.

The key question is whether the $1.20 to $1.25 range holds. The fact that the sharp drop triggered by the Binance hacking news was immediately absorbed by buying is being read as a sign that buying interest is still alive. U.Today said that if buyers defend $1.2292 and reclaim the daily average line at $1.3145, the current range could become an “official bottom.”

If $1.20 breaks, downside could open again. In that case, XRP could face additional downward pressure toward the $0.98 to $1.00 range, cited as the August low. As a result, in the near term, defending $1.2292 and reclaiming $1.3145 are expected to be key turning points that determine XRP’s direction.