XRP Price Analysis: Can Ripple Recover Above $1.40 After Falling to $1.20?

XRP is approaching a critical support area after another failed recovery attempt extended its October decline. Trading near $1.25 on October 31, 2026, the token remains below several important technical levels, while its latest rebound has yet to establish a convincing change in market structure. The next move around $1.20 to $1.25 could determine whether buyers can stabilize the price or sellers push XRP toward lower support.

The latest decline follows a rally that lifted XRP from approximately $0.99 in August to $1.70. That advance lost momentum below the $1.70 to $1.80 resistance region, leaving the market with a series of lower highs. XRP subsequently lost the $1.34 Fibonacci retracement level and returned to a support area that previously attracted buyers.

The $1.25 level is particularly important because it aligns with the 0.618 Fibonacci retracement of the August recovery and a previous demand zone. XRP briefly dropped toward $1.20 before recovering, suggesting that buyers are still active at lower prices. However, a temporary rebound does not confirm that the support area has held.

XRP Price Analysis: The $1.20 Support Level Is Critical

The daily chart places $1.20 at the center of the current battle between buyers and sellers. A sustained defense of this level could give XRP an opportunity to reclaim $1.25, followed by resistance at $1.34. A stronger recovery would then need to overcome the $1.40 supply zone, where selling pressure has previously interrupted upward momentum.

The downside scenario becomes more concerning if XRP records a decisive daily close below $1.20. Such a move could expose the $1.10 to $1.14 demand region, which coincides with the 0.786 Fibonacci retracement. This area would represent an important test for investors who entered during the August rally.

The four-hour chart provides further evidence of the pressure facing XRP. Since reaching approximately $1.65 in late September, the token has traded inside a descending channel, with lower highs and lower lows defining the short-term trend. Its latest attempt to recover was rejected near $1.33, reinforcing the importance of the channel’s upper boundary.

The rejection also pushed XRP below the $1.25 demand zone before the price briefly reached $1.20. Buyers have since attempted to recover lost ground, but the market must reclaim $1.25 to improve the immediate technical picture. If that level becomes resistance instead of support, sellers could retain control of the next move.

Can XRP Break Its Descending Channel?

A recovery above $1.28 would provide an early indication that buyers are regaining momentum. It could open the way toward the descending channel’s upper boundary around $1.30, followed by the more significant $1.40 resistance area. A move through these levels would weaken the current bearish structure, although confirmation would require sustained trading above resistance.

On the other hand, another rejection around $1.28 to $1.30 could leave XRP vulnerable to renewed selling. A break below $1.20 would put the channel’s lower boundary near $1.17 into focus, extending the correction that has developed throughout October.

The broader market environment also matters. The recent Binance security incident and wider cryptocurrency market weakness have added uncertainty to trading conditions. However, the available price data does not establish that the Binance hack alone caused XRP’s decline. Traders should distinguish between broader market sentiment and the technical factors visible on XRP’s chart.

For now, XRP remains in a short-term bearish structure, with $1.20 serving as the immediate downside level and $1.40 as a major recovery threshold. Buyers need to reclaim the descending channel and overcome nearby resistance before a stronger bullish outlook becomes convincing. Until then, the possibility of another move lower remains open.