Key takeaways:
-
XRP price dropped 8.75% on Friday despite Ripple’s $1 billion acquisition plans.
-
A drop toward the $2 support level is possible in the coming days, as bulls pin their hopes on a rebound.
Ripple is reportedly planning to raise $1 billion to purchase XRP (XRP) for its own digital asset treasury. This move could make it the world’s largest corporate holder of this top-five cryptocurrency.
However, XRP bulls largely ignored the news on Friday, with the price falling 8.75% after the Oct. 17 announcement, while continuing its prevailing downtrend, as shown below.
Can XRP break out of its prevailing downtrend in October?
XRP price eyes recovery after testing $2 support
Looking broadly, XRP has been fluctuating within a falling wedge pattern after last week’s crypto market rout, which liquidated a record $20 billion or more in positions.
The price could still dip toward the $2 support level, coinciding with the wedge’s lower boundary and serving as a potential reversal zone.
A breakout above the wedge’s upper trendline could trigger an upside toward the $2.36–$2.75 range, up 5-20% from current price levels, in October.
Related: Ripple buys corporate treasury management company GTreasury for $1B
That range features levels with up to $118.76 million in cumulative short leverages, according to CoinGlass data.
Potential short liquidations at these levels could add momentum toward $3, a psychological resistance target further aligning with the upper boundary of XRP’s descending triangle pattern.
Conversely, a close below $2 would invalidate the wedge setup, inviting further downside pressure toward $1.65, the 0.618 Fibonacci retracement level, by month’s end.
Longer term: XRP still on track for a breakout
On longer-term charts, XRP is maintaining its ascending triangle breakout scenario despite plunging 60% during last week’s “black Friday.”
As of Friday, the cryptocurrency was holding above the triangle’s lower trendline near $2.25 while eyeing a rebound toward the upper trendline near $3.55.
A breakout above $3.55 with significant volumes could send the price to as high as $7.75, representing a 250% increase from current levels, by early 2026.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
