The cryptocurrency market has been experiencing a significant amount of volatility in recent weeks, with many top coins seeing substantial price swings. One such coin is XRP, which has been struggling to gain traction despite some positive news. Ripple, the company behind XRP, has announced plans to raise $1 billion to purchase XRP for its own digital asset treasury, which could make it the world’s largest business holder of this top 5 cryptocurrency.
XRP Price Analysis
Despite this news, XRP’s price fell 8.75% on Friday, continuing its prevailing downtrend. The price could still fall towards the $2 support level, which coincides with the lower boundary of the falling wedge pattern and serves as a potential reversal zone. 
A breakout above the upper trendline of the wedge could trigger an uptrend towards the $2.36-$2.75 range in October, representing a 5-20% increase from current price levels. According to CoinGlass data, this range includes levels with cumulative short leverage of up to $118.76 million. 
Recovery Prospects
Potential short liquidations at these levels could increase momentum towards $3, a psychological resistance target that further aligns with the upper boundary of XRP’s descending triangle pattern. 
Conversely, a close below $2 would invalidate the wedge setup and result in further bearish pressure towards $1.65, the 0.618 Fibonacci Retracement level, by the end of the month. 
Long-Term Outlook
On longer-term charts, XRP maintains its ascending triangle breakout scenario despite plunging 60% on “Black Friday” last week. On Friday, the cryptocurrency held above the lower trendline of the triangle at around $2.25 while a rebound was expected towards the upper trendline at around $3.55. 
A breakout above $3.55 on significant volumes could send the price as high as $7.75 by early 2026, a 250% increase from current levels. For more information, visit https://cointelegraph.com/news/ripple-1b-buy-back-fails-lift-price-can-xrp-still-rebound
