Key takeaways:
XRP price decreased by 8.75% on Friday, even with Ripple’s plans to acquire $1 billion.
A dip toward the $2 support level seems likely in the upcoming days, as bulls hope for a rebound.
Ripple is reportedly looking to raise $1 billion to buy XRP (XRP) for its digital asset treasury. This strategy could position it as the largest corporate holder of this top-five cryptocurrency.
However, XRP bulls largely overlooked this news on Friday, with the price falling 8.75% following the announcement on Oct. 17, continuing its prevailing downtrend, as illustrated below.
Will XRP manage to break free from its current downtrend in October?
XRP price targets recovery after testing $2 support
Overall, XRP has been moving within a falling wedge pattern following last week’s crypto market collapse, which wiped out over $20 billion in positions.
The price may still fall toward the $2 support level, aligning with the lower boundary of the wedge and representing a potential reversal zone.
A breakout above the wedge’s upper trendline could lead to a price increase toward the $2.36–$2.75 range, representing a potential gain of 5-20% from current levels in October.
Related: Ripple acquires corporate treasury management firm GTreasury for $1B
This range features levels holding up to $118.76 million in cumulative short positions, according to CoinGlass data.
Potential short liquidations at these levels could provide momentum toward $3, a psychological resistance target that further aligns with the upper boundary of XRP’s descending triangle pattern.
On the other hand, a close below $2 would nullify the wedge setup, leading to further downside towards $1.65, the 0.618 Fibonacci retracement level, by the end of the month.
Long-term outlook: XRP remains poised for a breakout
On longer-term charts, XRP is still following its ascending triangle breakout scenario despite a 60% drop during last week’s “black Friday.”
As of Friday, the cryptocurrency was maintaining its position above the triangle’s lower trendline around $2.25 while aiming for a rebound towards the upper trendline near $3.55.
A breakout above $3.55 with significant volume could propel the price to as high as $7.75, indicating a potential increase of 250% 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.
