Key takeaways:
XRP (XRP) has consistently broken past the $3 level since its November 2024 surge, but each attempt resulted in a fakeout followed by deeper pullbacks.
On Saturday, its price once again fell below the $3 support, coinciding with its 200-4H exponential moving average (EMA; green wave).
Could the XRP price decline even further in the coming days? Let’s take a look.
XRP chart fractal signals 15% correction ahead
XRP is reflecting a bearish fractal that could prompt a 15% drop to $2.60 in the coming days.
In September, the token’s price formed a rounded top, followed by a period of symmetrical triangle consolidation before breaking down sharply. That movement caused XRP prices to fall toward the $2.70 range.
A similar pattern is emerging again in October.
On the four-hour chart, XRP has formed another rounded top and is consolidating within a bearish flag. This pattern often leads to another downward leg as much as the maximum distance between its upper and lower trendlines.
The four-hour relative strength indicator (RSI) adds to this risk, as it has been correcting from overbought levels above 70 and still has space to drop before reaching the oversold threshold of 30.
Related: XRP price reclaims $3, paving the way for 40% gains in October
XRP may first test flag support at $2.93. A decisive close below this level could confirm a breakdown, potentially opening the path to $2.60, a decline of nearly 15% from current prices.
This downside target aligns with XRP’s 200-day EMA (the blue wave in the chart below).
A bounce from the 20- ($2.93) or 50-day ($2.52) EMAs may invalidate the bearish outlook, which could lead to a rebound toward $3 again.
$500 million long squeeze may exacerbate the XRP sell-off
XRP’s $3 level rests between two significant liquidity pockets, according to data from CoinGlass.
On the upside, thick clusters of long liquidation levels exist between $3.18 and $3.40.
For example, at $3.18, the cumulative short leverage is around $33.81 million, suggesting that the market could move upward to trigger stop orders if bulls regain momentum.
Conversely, the heatmap reveals even larger liquidation pools stacked between $2.89 and $2.73, totaling over $500 million.
XRP’s decisive close below $3 could trigger a wave of long liquidations toward $2.89–$2.73. However, staying above $3 allows for a potential stop-run to $3.20–$3.40.
This article offers no investment advice or recommendations. Every investment and trading move carries risk, and readers should perform their own research before making any decisions.
