XRP faces key resistance at $1.38, liquidation exceeds $11 million

$1.60 possible if resistance is cleared

Ali Martinez, a well-known cryptocurrency trader, outlined in his latest analysis that XRP may first drop towards $1.25. This support level aligns with the lower boundary of the parallel channel identified in recent price charts.

Despite negative sentiment, including notable selling activity by larger holders, Martinez suggested a possible upward reversal could occur soon. He highlighted, “A bounce from $1.25 could give XRP the strength to rally toward the mid-range at $1.42 or potentially the top of the channel at $1.60.”

XRP’s price action suggests $1.25 might serve as a springboard for moves towards $1.42 or $1.60, provided the current downtrend reverses at support.

Presently, XRP trades approximately $0.06 above the channel’s lower boundary. Broader market uncertainty remains, as Bitcoin’s failure to hold above $87,000 has unsettled risk assets across markets.

In the regulatory landscape, the CLARITY Act failed to advance in the US Senate following an unsuccessful cloture vote on September 15, 2026. The White House introduced an alternative proposal the following month.

Despite external uncertainties, main on-chain technical indicators for XRP show strength. Martinez pointed to signs that a local bottom could be forming on the daily chart, referencing buy signals identified by the Tom DeMark Sequential at the $1.31 to $1.32 range, including a Sequential 13, a TD 9, and another Aggressive 13.

Mini dictionary: Tom DeMark Sequential, a technical indicator used to identify potential turning points in price trends. It highlights points where a trend may be exhausted and a reversal becomes likely.

Bearish sentiment and liquidation pressure

For a bullish reversal to materialize, a shift in momentum by buyers would be necessary. On Thursday, XRP’s trading volume stood at $3 billion, but bears have dominated, with selling pressure outweighing buying interest.

Derivatives data from CoinPaprika and CoinGlass display similar trends in sentiment. According to CoinGlass’ Futures statistics, the long-to-short ratio has dropped to 0.93, indicating that traders betting on a price decline currently outnumber those anticipating gains.

Liquidation figures reveal that bulls faced $11.88 million in forced liquidations, nearly matching the total $12.56 million liquidated. This underscores heightened risk for those traders expecting an upward move in XRP.

While technicals point to a potential local bottom, traders remain cautious due to prevailing bearish momentum and continued liquidation pressure.