XRP’s $1.38 support level remains a critical focal point, as the latest rebound has yet to confirm that the corrective structure on the hourly chart has run its course.

Liquidation data from August shows that leverage was flushed out during the sharp rally, while derivatives positioning remains exposed to volatility. That dynamic matters beyond XRP itself: perpetual futures are a major venue for crypto trading, and episodes of forced liquidation can compress price swings into single sessions, which is why traders track liquidation clusters as a gauge of how crowded and fragile positioning has become.

A break above $1.445 could strengthen the recovery, while a loss of $1.38 may open the door to deeper retracement levels across the chart structure.

Following the sharp advance, XRP’s market structure remains corrective, with support under pressure and liquidation data illustrating how rapidly leveraged positioning can shift as traders weigh whether the recovery can continue.

XRP Holds Above Critical Support

The hourly chart shows XRP recovering after its sharp advance toward $1.70. The rally began near $1.00 and developed with strong trading activity, although the subsequent rejection produced lower highs throughout the corrective phase.

More Crypto Online (analysis on X) describes the move as a corrective pullback, placing the main support zone between $1.10 and $1.38. The latest rebound remains a three-wave move without confirmed evidence of a reversal.

At the time of writing, XRP traded near $1.41, keeping the price above the upper boundary of that zone. This position offers buyers an opportunity to defend the current recovery. Still, holding $1.38 by itself does not confirm that the correction has ended.

The chart also shows descending blue trendlines that have contained several recovery attempts. Price must break free of this structure before the rebound gains stronger technical confirmation. Until that happens, sellers retain control of the broader corrective setup.

Fibonacci Levels Define the Next Moves

The $1.38 area sits near the 38.2% Fibonacci retracement. Deeper retracement levels appear around $1.293, $1.213, and $1.106, and these could become relevant if selling pressure once again pushes below the support. Fibonacci retracements — drawn from the prior swing low near $1.00 to the high near $1.70 — are one of the most widely used tools in crypto technical analysis, which is why these levels often coincide with clusters of resting orders and heightened trader attention.

Initial resistance on the Fibonacci grid lies near $1.445, with additional resistance at roughly $1.490, $1.536, and $1.604. Each of these levels could challenge buyers if the rebound extends higher.

A sustained break above $1.445 would improve the short-term recovery structure and could weaken the immediate bearish pressure from the descending resistance. However, confirmation would still require continued momentum above the subsequent resistance levels.

Conversely, losing $1.38 would reopen the deeper retracement structure, making the $1.29 region an important downside reference. Further weakness could bring $1.21 and $1.10 back into focus.

Liquidations Reveal Elevated Leverage Risk

The perpetual liquidation chart (Coinglass) shows limited activity through much of March and May, with several larger liquidation clusters emerging during sharper moves in early June — episodes that signaled growing exposure to leveraged market swings.

The largest liquidation activity emerged around August 18–22. Large red bars appeared before an exceptionally tall green liquidation bar, a sequence that coincided with XRP’s sharp upward price movement.

CoinMarketCap reported approximately $114 million in XRP perpetual liquidations, the largest single-day XRP liquidation total recorded at that time. The event demonstrated how quickly leverage can amplify an already strong directional move — a short squeeze of that scale forces leveraged sellers to buy back positions, compounding the upward pressure.

Afterward, liquidation activity declined while XRP remained in the $1.40–$1.50 range, suggesting that much of the vulnerable positioning had already been removed. Even so, the remaining leverage continues to leave the market exposed to another sharp liquidation cycle. For readers watching what comes next, the key markers are whether price can clear the descending trendlines and hold above $1.445, or whether a slide under $1.38 shifts attention to the deeper Fibonacci supports.