Key points:

• XRP rose 2% in the past 24 hours, rebounding from the $1.20 support level.
• The single-asset vaults ( Single Asset Vault , XLS-65 ) and lending protocols ( Lending Protocol , XLS-66 ) proposed by XRP Ledger have received 60% and 54% support from validators, respectively.
• XRP must break through $1.32 to strengthen the bullish outlook, and there is a possibility of reaching $1.40.

As buyers returned to the cryptocurrency market after selling off last week, XRP rebounded strongly, rising by 2% in the past 24 hours.

This rebound has enabled XRP to regain the important level of $1.26. Previously, this level was briefly lost after a security vulnerability worth $630 million on Binance triggered widespread selling pressure.

Trading activities have also improved, with daily trading volume increasing by nearly 30%, to about 1.8 billion US dollars.

However, this round of rebound has not yet triggered large-scale short covering, indicating that XRP has not yet broken through the resistance level sufficient to confirm a sustained bullish reversal.

XRP rebounded from $1.20 after the Binance hack incident

This incident has raised concerns about the security of cryptocurrency exchanges in the market and prompted investors to reassess their exposure at Binance, leading to a mass withdrawal of funds.

As market confidence gradually improves, XRP has risen back above $1.26, regaining the level that served as support during the recent decline.

Along with the rebound came an increase in trading activity. Daily trading volume rose to approximately $1.8 billion, accounting for more than 2% of the circulating market value of XRP.

A broader macroeconomic environment may also be contributing to the rebound of XRP. The price of West Texas Intermediate crude oil ( WTI ) in the United States has fallen below $100 per barrel for the first time since October 15, despite the ongoing geopolitical tensions between the United States and Iran.

If oil prices continue to fall, it may also affect market expectations regarding the Federal Reserve's interest rate decision in December.

A more favorable inflation outlook may ease the pressure on policymakers to raise interest rates, thereby improving sentiment towards risk-sensitive assets such as cryptocurrencies.

XRP Ledger Loan Proposal Receives Support from Verifiers

In addition to a broader market recovery, the internal development within XRP Ledger may also provide additional support for the medium-term prospects of XRP.

Two proposals aimed at introducing native lending functions are gaining increasing support from network validators.

According to the provided XRPScan data, this proposal has received approval from approximately 60% of the validators. This is still 20 percentage points short of the 80% threshold required to activate the amendment. However, to reach that threshold, the network's applicable activation conditions must also be met.

The second proposal, XLS-66, focuses on the lending protocol itself. Currently, it has received support from about 54% of validators, which is still far from the required approval threshold.

If XLS-65 receives sufficient support, verifiers may be more inclined to approve XLS-66, although neither of these outcomes can be guaranteed.

XRP recovers to $1.27, RSI shows bullish momentum

The four-hour chart of XRP shows that after rebounding from the $1.20 region, the short-term momentum is improving.

The recapture of this area is a positive sign, as it indicates that buyers are attempting to rebuild the market's short-term bullish structure.

The Relative Strength Index ( RSI ) on the four-hour chart is currently near 64. A value of RSI above 50 usually indicates that bullish momentum is strengthening, while a rise above 70 may suggest that an asset has entered an overbought state.

Despite the increase in trading volume, XRP still requires a higher level of participation to break through the previous resistance level that attracted sellers.

The next major challenge for buyers is the resistance level of $1.32. If they can decisively break through this area, it will strengthen the short-term bullish outlook and indicate that this rebound is developing into a more sustained recovery.

If the buying momentum continues, XRP could potentially rise further to $1.40. However, the $1.32 level might also attract traders to sell and exit the market again after the recent decline.

If there is a pullback at that resistance level, XRP could retreat to $1.26 again. If that level is lost, the next important support level is around $1.20, which is where buyers entered before the related selling pressure on Binance.

If it falls below $1.20, traders will pay attention to potential support areas around $1.14 and $1.08. These areas correspond to the fair value gaps identified on the four-hour chart ( FVG ).