The XRP (XRP) cryptocurrency has been experiencing a tumultuous period, with its price repeatedly breaking over the $3 level since its boom in November 2024, only to end in fakeouts followed by deeper corrections. This volatility has left investors and traders wondering about the future direction of the XRP price.
On Saturday, the price once again rose to the $3 level, only to collapse along with its exponential moving average of 200 to 4 hours (EMA; Green Wave). This has raised concerns about the potential for further decreases in the coming days.
XRP Chart Fractal Suggests 15% Correction Ahead
XRP is reflecting a bearish fractal that could trigger a 15% decrease to $2.60 in the coming days. In September, the token’s price formed a rounded top and then fell into a period of symmetrical triangle consolidation before collapsing. This move sent XRP prices towards $2.70.
A similar sequence is playing out again in October. On the four-hour chart, XRP has formed another rounded top and consolidated within a bearish structure. This often leads to another leg down, which is all below the maximum distance between the upper and lower trend lines.
The four-hour relative strength indicator (RSI) also contributes to this risk, as it has corrected from overbought levels over 70 and still has space for the decline before the oversold threshold of 30.
XRP Price Rebound to $3 and Potential 40% Profits in October
XRP can first test flag support at $2.93. A decisive close below this level could confirm a breakdown, which may open the way to $2.60, representing a decline of almost 15% compared to current prices.
The downward target is aimed at the 200-day EMA of XRP (the blue wave in the chart below).
A bounce off the 20 ($2.93) or 50-day EMAs can invalidate the bearish outlook and set up a rebound towards $3.
$500 Million Long Squeeze Could Fuel XRP Sell-Off
According to data from Coinglass, the $3 level of XRP is sandwiched between two heavy liquidity pools. On one hand, there are thick clusters of long liquidation levels between $3.18 and $3.40. For instance, the cumulative short leverage is approximately $33.81 million at $3.18, indicating that the market could go up to trigger stop orders if the bulls regain control.
On the other hand, however, the Heatmap shows even larger liquidation pools stacked between $2.89 and $2.73, totaling over $500 million. A decisive close of XRP below $3 could trigger a cascade of long liquidations between $2.89 and $2.73. Holding above $3 leaves room for a stop run between $3.20 and $3.40.
This article does not contain investment advice or recommendations. Every investment and trade movement involves risk, and readers should conduct their own research before making a decision. For more information, visit https://cointelegraph.com/news/xrp-below-3-dollars-again-how-low-can-the-price-go?utm_source=rss_feed&utm_medium=rss_category_market-analysis&utm_campaign=rss_partner_inbound
