What to Know
- XRP dropped 3% over the past 24 hours after news that Binance, the world’s biggest crypto exchange, was hacked.
- Binance Chief Executive Officer Richard Teng confirmed the incident at around 3 a.m. Eastern Time, indicating that roughly $6.3 billion was siphoned from exchange wallets.
- Binance has frozen $3 billion in assets on-chain with help from Ripple, Tether, Circle, and other partners.
- The exchange temporarily froze withdrawals and said users’ funds are safe, with losses to be covered by reserves in its SAFU fund.
- XRP trading volume surged 141% to $4.9 billion, a figure equal to more than 6% of the asset’s circulating market cap.
- More than $1.3 billion in long positions were liquidated across the crypto futures market during the past 24 hours.
- XRP lost the $1.26 support area, and long liquidations for the token were the fifth highest in the past 90 days.
- Some technical traders now see a risk of a deeper decline toward $1.12 if XRP fails to reclaim the $1.26 area.
XRP Slides as Binance Security Incident Jolts Crypto Sentiment
XRP came under pressure as the broader crypto market reacted to news of a major security incident at Binance. The token declined 3% over the past 24 hours, with traders moving quickly to reduce exposure as uncertainty spread through digital asset markets. The timing of the selloff was notable because XRP had been leaning on the $1.26 area as an important short-term support zone before the latest wave of selling pushed the asset below that level.
Binance Chief Executive Officer Richard Teng confirmed the incident today at around 3 a.m. Eastern Time and indicated that roughly $6.3 billion had been siphoned from the exchange’s wallets. The disclosure immediately drew attention across the crypto sector because Binance remains the industry’s largest trading venue and a key source of liquidity for many major tokens. When a platform of that scale experiences a breach, traders often respond first by cutting risk and asking questions later.
Binance said its initial investigation suggests the incident may involve a compromised DevOps engineer’s laptop. The exchange stated that the compromise may have allowed an attacker to gain access to a service container and submit unauthorized withdrawal transactions. While the technical details are still being assessed, the explanation highlights the operational risks that continue to shadow centralized crypto infrastructure, even among the most closely watched platforms in the industry.
Binance Freezes Assets and Moves to Contain the Damage
Binance has moved to contain the impact of the breach by freezing $3 billion in assets on-chain with the help of Ripple, Tether, Circle, and other major partners. The exchange also froze withdrawals temporarily as part of its response. These measures appear designed to slow the movement of stolen funds, preserve evidence, and reduce the possibility of further unauthorized activity while the platform assesses the full scope of the incident.
The exchange has also told users that their funds are safe and that all losses will be covered by reserves held in its SAFU fund. That assurance is important for market confidence, but traders are still likely to monitor whether Binance can recover more of the siphoned assets and how quickly normal operations stabilize. In crypto markets, even when customer funds are said to be protected, the perception of platform risk can affect liquidity, volatility, and positioning across multiple tokens.
The incident has revived concerns about the persistent security threats facing digital asset exchanges. Binance is the latest major trading venue to face a successful attack, following previous breaches affecting other exchanges. Last year, Bitget and Bybit lost hundreds of millions to bad actors, including groups described as state-sponsored North Korean actors. For market participants, the pattern reinforces the view that exchange security remains a critical vulnerability for the broader digital asset ecosystem.
Liquidations Add Pressure as XRP Volume Surges
The market reaction was amplified by leveraged positioning. Across crypto futures markets, more than $1.3 billion in long positions were liquidated over the past 24 hours as prices dropped. Long liquidations can accelerate declines because forced selling often occurs when traders are least able to respond. When liquidation cascades hit during a period of market stress, even assets with strong liquidity can experience rapid technical breakdowns.
XRP was directly caught in that process. Trading volumes for the token surged 141% to $4.9 billion, a level that represents more than 6% of its circulating market cap. A sudden volume spike of that scale can reflect intense repositioning, and in this case it points to heavy selling pressure as traders responded to the broader crypto shock. The fact that XRP lost the $1.26 support during the move adds to the technical importance of the current price area.
For XRP specifically, long liquidations were the fifth highest in the past 90 days. That detail underscores how aggressive the shakeout has been relative to recent trading history. While high liquidation events can sometimes mark short-term exhaustion points, they can also signal that leveraged bullish positioning has been damaged enough to weaken rebounds. The key question now is whether buyers can reclaim lost ground or whether the failed support turns into resistance.
The $1.26 Area Becomes the Key Battleground
Technical traders are focusing on the $1.26 area because XRP has moved back toward that level from below after touching the $1.20 area. The recovery during today’s session may represent a technical bounce, but confirmation is still lacking. When an asset breaks below a major support and then retests it from underneath, that zone often becomes a decision point. A clean move back above the level can reduce downside pressure, while rejection may invite another round of selling.
If XRP fails to reclaim $1.26, some chart watchers see an increased probability that the $1.20 support area will be tested again during the weekend. A renewed move to $1.20 would matter because it would show that the initial bounce lacked follow-through and that sellers remain in control of short-term price action. In a risk-off crypto tape, failed rebounds can become especially dangerous because cautious traders may prefer to sell strength rather than buy weakness.
The deeper downside level being monitored is $1.12. Market participants are treating that area as a potential target if XRP cannot repair the damage caused by the break below $1.26. The move toward $1.12 is not guaranteed, but the technical setup currently leans bearish while the token trades below the recently lost support. The outlook will depend heavily on whether buyers can absorb supply near the current retest zone.
RSI Signal Suggests Sellers Hold the Near-Term Advantage
Momentum indicators are also flashing caution. The Relative Strength Index has dropped below 40, which technical traders often read as a sell signal in a weakening market. While the RSI is not a standalone forecast, a move below that threshold can indicate that sellers are controlling the pace of price action. In combination with the break of $1.26, the signal strengthens the case for a defensive short-term stance.
The current technical picture suggests that XRP bulls need to act quickly to stabilize the chart. A sustained reclaim of the $1.26 area would be the first constructive development and could help ease pressure from liquidation-driven selling. Without that recovery, however, the risk remains that the token revisits $1.20 and potentially extends toward $1.12 if broader crypto sentiment remains fragile.
For now, the Binance incident is the central market catalyst. Because of Binance’s size and influence, the breach could weigh temporarily on crypto prices as institutional players and active traders monitor the exchange’s recovery efforts, the handling of affected assets, and the return of normal platform operations. XRP’s next move will likely reflect both token-specific technicals and the wider market’s confidence in the aftermath of the security event.
Market Confidence Hinges on Recovery and Containment
Crypto markets have shown resilience after major security events in the past, but the immediate aftermath often brings elevated volatility. Traders typically watch whether stolen assets can be frozen, whether withdrawals resume smoothly, and whether exchanges communicate clearly about the incident. Binance’s statement that user funds are safe and losses will be covered is aimed at limiting panic, but the market is still pricing uncertainty around the event.
For XRP, that uncertainty arrives at a technically sensitive moment. The token is not merely reacting to a headline; it is also dealing with a breakdown of a widely watched support level. This combination of external shock and technical weakness creates a higher-risk trading environment. Until XRP either reclaims $1.26 or shows stronger demand near lower support zones, many traders are likely to remain cautious.
The near-term outlook therefore depends on confirmation. If the retest of $1.26 fails, the bearish scenario gains traction and the $1.20 area returns to focus. If selling pressure continues after that, $1.12 becomes the next level discussed by technical traders. If buyers reclaim $1.26, the market may begin to treat the drop as a shock-driven shakeout rather than the start of a more extended correction.
Frequently Asked Questions (FAQs)
Why did XRP fall over the past 24 hours?
XRP fell 3% over the past 24 hours after news of a major Binance security incident triggered a broader risk-off move across crypto markets. The decline was intensified by heavy futures liquidations and a break below the $1.26 support area.
How much was reportedly siphoned from Binance wallets?
Binance Chief Executive Officer Richard Teng indicated that roughly $6.3 billion was siphoned from the exchange’s wallets. Binance has said it is investigating the incident and has taken steps to freeze assets on-chain.
How much has Binance frozen so far?
Binance has frozen $3 billion in assets on-chain with assistance from Ripple, Tether, Circle, and other major partners. The exchange also temporarily froze withdrawals as part of its containment efforts.
Are Binance users’ funds safe?
Binance has stated that users’ funds are safe and that losses will be covered by reserves held in its SAFU fund. Traders are still monitoring how quickly the exchange stabilizes operations and whether additional assets can be recovered.
Why is the $1.26 level important for XRP?
The $1.26 area had acted as an important support level for XRP. After the token broke below it, technical traders began watching whether that same area would turn into resistance during the rebound attempt.
What happens if XRP fails to reclaim $1.26?
If XRP fails to reclaim $1.26, some chart watchers expect the token could retest the $1.20 support area. Continued weakness could increase the risk of a deeper move toward $1.12.
What does the RSI signal show for XRP?
The Relative Strength Index has dropped below 40, which technical traders often interpret as a bearish signal. This suggests sellers currently have the near-term advantage unless XRP can regain key support.
How large were crypto long liquidations after the news?
More than $1.3 billion in long positions were liquidated across the crypto futures market during the past 24 hours. For XRP, long liquidations were the fifth highest in the past 90 days.
Is XRP guaranteed to fall to $1.12?
No. A move to $1.12 is a risk scenario being watched by technical traders, not a certainty. XRP’s path depends on whether buyers can reclaim $1.26 and whether broader crypto sentiment improves after the Binance incident.
