XRP is trading below its 200-day moving average for the first time since August 2026, falling to a low of $1.19 on Friday after a sharp decline triggered by a major security breach at Binance and elevated inflation data.
The cryptocurrency had previously touched beneath this technical level in mid-September and twice in October, but those instances were brief. The current break marks the first sustained period of trading below the 200-day moving average since August.
Binance Hack and Inflation Data
XRP fell sharply on Thursday after news of the Binance heist surfaced. The breach impacted nearly $300 million in XRP and affected $6.3 billion in total client assets. Reports describe the incident as the largest crypto theft on record, contributing to a broader drop in crypto prices.
On Thursday, XRP fell to a low of $1.22 before dropping below its 200-day moving average. The decline continued on Friday, reaching a low of $1.19 as investors weighed a series of economic indicators and the Federal Reserve’s latest interest rate decision.
The personal consumption expenditures price index, released on Thursday, rose 0.5% monthly and 3.6% year-over-year. This figure exceeded the Federal Reserve’s 2% target. The central bank had decided to hold its key interest rate steady one day before the news of the Binance attack emerged.
Technical Levels and Binance Response
The drop to $1.19 on Friday was met with a rebound, but buyers did not gain enough strength to push the price back above the 200-day moving average. At press time, XRP remained trading below this key technical level.
Traders are monitoring the price action for a hold above the weekly support at the 50-week moving average. If this support breaks, XRP could target $1 or even $0.98. Conversely, if XRP holds above its weekly support, it might reach $1.70.
Investors are looking ahead to the October nonfarm payrolls report, scheduled for release on Friday, as a key data point for the coming days.
In response to the security incident, Binance co-founder Yi He stated that the exchange allocated $6.34 billion from its own funds to buy major cryptocurrencies, including XRP and RLUSD. According to the update, XRP and RLUSD have achieved 100% reserve backing in the current Binance user fund.
Frequently Asked Questions
How much did the Binance hack affect XRP?
The Binance hack impacted nearly $300 million in XRP. The total client assets affected by the breach were reported at $6.3 billion.
What is Binance’s current reserve backing for XRP?
Binance stated that XRP has achieved 100% reserve backing in its user fund. The exchange allocated $6.34 billion from its own funds to purchase major cryptocurrencies, including XRP.
