XRP Rebounds to $1.32: Will It Break $1.40 or Drop to $1.25?

XRP Price Overview: Rebounding After Recent Pressure

XRP is trying to pull off a recovery after facing renewed selling pressure. The token was recently rejected at a local resistance level of $1.39. Following that pullback, it dropped to test support at $1.27 before bouncing back to around $1.32.

Over the past 24 hours, the top-five cryptocurrency declined by more than 1%. At the same time, trading volume fell by 31.71%, settling at $1.68 billion. This drop in volume suggests that traders are stepping back to evaluate where the market might head next.

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Ledger Activity: Network Participation Is Rising

While price action remains hesitant, activity on the XRP Ledger is showing clear signs of improvement. According to data from Token Terminal, daily active addresses recently climbed to 27,400.

This is a noticeable increase compared to early October, when daily active addresses hovered between 15,000 and 20,000. Higher network activity means more users are interacting with the blockchain. However, on-chain growth alone does not always translate immediately into price gains if market demand is lacking.

Spot ETF Flows: Stabilization After Recent Weakness

Institutional interest through spot ETF flows presents a mixed picture. Data shows sharp declines in ETF activity around October 8 to October 9, followed by additional weakness between October 19 and October 20.

Fortunately, flows have shown signs of stabilizing over the past few days. While this implies that extreme selling pressure has eased, current inflows are not yet strong enough to confirm a clear bullish reversal.

Technical Analysis: The $1.30 Support vs $1.40 Resistance Battle

XRP continues to form lower highs and lower lows on the chart after reaching a resistance peak of $1.60. The price action currently sits in a critical decision zone around $1.33.

The volume profile highlights a dense trading cluster between $1.40 and $1.55, indicating strong overhead resistance where many sellers could step in.

Potential Bullish Scenario

If buying volume picks up and spot ETF inflows continue to grow, XRP could push above the pivotal $1.40 mark. In this favorable environment, buyers might attempt a rally toward $1.55.

Potential Bearish Scenario

Conversely, if market sentiment weakens and buyers fail to hold immediate support at $1.30, selling pressure could intensify. Under these conditions, the price risks dropping back to test lower support between $1.28 and $1.25.

Key Drivers to Watch Moving Forward

Several external and internal factors could determine XRP's next major trend direction:

• BitcoinBTC+0.10%'s Price Movement: As the broader market leader, Bitcoin heavily influences overall crypto sentiment.
• Institutional ETF Inflows: Consistent inflows would signal stronger institutional demand for XRP.
• Network Usage: Sustained high daily active addresses on the XRP Ledger indicate solid user adoption.
• Regulatory & News Updates: Any official announcements regarding RippleXRP-0.29% or legal developments can quickly impact market confidence.

Summary of Important XRP Levels

Traders are closely watching the following key technical boundaries:

• Key Resistance: $1.40 and $1.55
• Immediate Support: $1.30
• Lower Support Zones: $1.28 and $1.25