Key takeaways:
XRP price fell by 8.75% on Friday despite Ripple’s plans to acquire $1 billion.
A potential decline toward the $2 support level may occur in the coming days, as bulls hope for a recovery.
Ripple is reportedly seeking to raise $1 billion to buy XRP (XRP) for its own digital asset treasury, potentially becoming the largest corporate holder of this leading cryptocurrency.
Despite this news, XRP bulls seemingly neglected the update on Friday, with prices plunging 8.75% following the announcement on Oct. 17, continuing their existing downtrend, as illustrated below.
Will XRP manage to escape its ongoing downtrend in October?
XRP price targets recovery after testing $2 support
Broadly speaking, XRP has been moving within a falling wedge pattern after last week’s market downturn, which wiped out a historic $20 billion or more in positions.
The price could still trend down toward the $2 support level, coinciding with the wedge’s lower boundary and acting as a potential reversal zone.
A breakout above the wedge’s upper trendline could lead to an uptick toward the $2.36–$2.75 range, representing a 5-20% increase from current price levels in October.
Related: Ripple acquires corporate treasury management company GTreasury for $1B
This range features levels with up to $118.76 million in cumulative short leverages, according to CoinGlass data.
Potential short liquidations at these levels could provide the momentum needed to push towards the psychological resistance at $3, aligning with the upper boundary of XRP’s descending triangle pattern.
Conversely, a close beneath $2 would invalidate the wedge setup, inviting increased selling pressure toward $1.65, the 0.618 Fibonacci retracement level, by the end of the month.
Long-term: XRP remains on track for a breakout
On longer timeframes, XRP continues 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 near $2.25 while targeting a rebound toward the upper trendline near $3.55.
A breakout above $3.55 with substantial volume could propel the price as high as $7.75, indicating a potential 250% increase from current levels by early 2026.
This article does not offer investment advice or recommendations. All investment and trading actions carry risks, and readers should perform their own research when making decisions.
