XRP rebounded towards $1.31 on Monday after a wave of liquidations battered leveraged traders, although evidence of fresh buying remained limited.
The cryptocurrency recovered from weekend lows around $1.26 , following several sessions of selling and declining futures positions.
Yet the recovery comes as US spot XRP exchange-traded funds have recorded their first weekly outflows in more than three months.
Who is buying XRP near $1.30?
XRP climbed from $1.26 to $1.29 during one hour on Sunday, with the 2.14% advance accompanied by roughly $240,000 in short liquidations across Binance, Bybit and OKX.
Those liquidations indicate that traders are betting on further declines and were forced to close positions, adding buying pressure as prices rose. However, that activity does not establish whether longer-term investors were accumulating XRP.
Market analyst Vuori Trading pointed to the $1.30–$1.32 support area in comments published by Blockonomi on 18 October.
“Still holding the 1.3-1.32 support! $1.39 is next logical level,” the analyst said.
That support briefly failed during Sunday’s dip towards $1.26. A break above the descending price channel could potentially open a route towards $1.87, although that remains a conditional technical target.
Has the liquidation wave exhausted sellers?
Derivatives positioning offers a stronger clue about why XRP has stopped falling as sharply.
Combined open interest on Binance and Bybit declined by 175 million XRP, or 26.5%, between 23 September and 16 October.
Over the same period, spot and perpetual-futures cumulative volume delta deteriorated by approximately $1.99 billion. The measure tracks aggressive buying against selling, suggesting sellers dominated transactions during the downturn.
Falling prices alongside shrinking open interest often indicate leveraged bulls are closing positions or being liquidated. Once those positions disappear, the market becomes less vulnerable to another cascade of forced selling.
But reduced selling is not the same as new demand. Petar Jovanović, writing in CaptainAltcoin, said XRP’s short-term conditions were “stretched enough for a rebound attempt”.
His analysis placed the short-term relative strength index near 24, an oversold reading, while other momentum measures remained bearish.
That combination supports the possibility of a relief rally, rather than confirmation that the broader downtrend is over.
Can fresh XRP demand sustain the recovery?
The institutional picture remains mixed. US spot XRP ETFs registered approximately $1.84 million in net outflows in the week ended 16 October, ending 13 consecutive weeks of inflows, according to SoSoValue figures.
The withdrawals were small compared with around $1.47 billion in ETF assets. Still, the reversal interrupted a previously consistent source of support.
Crucially, the negative volume-delta figures describe selling through 16 October. They cannot identify who bought during Monday’s recovery.
There is also disagreement over where attractive entry levels lie. Cryptoinsightuk favoured a potential purchase near $1.22 rather than assuming the $1.30 area would hold.
For bulls, reclaiming $1.33 and then challenging $1.39 with stronger spot buying would provide firmer evidence of renewed conviction.
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