Key insights:
XRP (XRP) has consistently surpassed the $3 mark since its surge in November 2024, yet each occasion has ended in a false breakout followed by more profound corrections.
On Saturday, the price again dipped below the $3 support, aligning with its 200-4H exponential moving average (EMA; green wave).
Is it possible for the XRP price to fall further in the upcoming days? Let’s take a look.
XRP chart fractal indicates a 15% correction may be imminent
XRP is reflecting a bearish fractal that could lead to a 15% drop toward $2.60 soon.
In September, the token’s price created a rounded top, followed by a phase of symmetrical triangle consolidation, before experiencing a sharp decline. This movement caused XRP prices to plummet toward the $2.70 region.
A similar pattern is unfolding once again in October.
On the four-hour chart, XRP has created another rounded top and is consolidating within a bearish flag. This configuration typically leads to another downward movement by 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 decline before reaching the oversold threshold of 30.
Related: XRP price regains $3, paving the way for 40% gains in October
XRP may initially test flag support at $2.93. A conclusive close below this level could confirm a breakdown, potentially paving the way to $2.60, nearly a 15% decline from current levels.
This downside target aligns with XRP’s 200-day EMA (the blue wave in the chart below).
A rebound from the 20- ($2.93) or 50-day ($2.52) EMAs may invalidate the bearish perspective, leading to a rebound toward $3 once more.
$500 million long squeeze could amplify the XRP sell-off
XRP’s $3 level resides right between two significant liquidity zones, as indicated by data resource CoinGlass.
On the upside, there are substantial clusters of long liquidation levels between $3.18 and $3.40.
For example, at $3.18, the cumulative short leverage is approximately $33.81 million, suggesting the market could move upward to activate stop orders if bulls regain control.
Conversely, the heatmap reveals even larger liquidation pools stacked between $2.89 and $2.73, totaling over $500 million.
A decisive close below $3 could initiate a wave of long liquidations toward $2.89–$2.73. However, maintaining a position above $3 allows for a potential stop-run to $3.20–$3.40.
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.
