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Primary insights:
XRP (XRP) has consistently surged past the $3 threshold since its November 2024 surge, yet every endeavor has concluded in a false breakout followed by significant retracements.
On Saturday, its value once more dipped beneath the $3 support, coinciding with its 200-4H exponential moving average (EMA; green wave).
Is there potential for the XRP price to decrease even more in the days ahead? Let’s investigate.
XRP chart fractal indicates a 15% correction ahead
XRP is replicating a bearish fractal that may initiate a 15% decline towards $2.60 in the following days.
In September, the token’s value created a rounded peak, then transitioned into a phase of symmetrical triangle consolidation before collapsing sharply. This action caused XRP prices to plunge towards the $2.70 region.
A comparable sequence is unfolding once more in October.
On the four-hour chart, XRP has established another rounded peak and is consolidating within a bearish flag. This formation typically leads to another downward movement by as much as the maximum gap between its upper and lower trendlines.
The four-hour relative strength index (RSI) adds to this risk, as it has been retracing from overbought regions above 70 and still has space to decline before reaching the oversold threshold of 30.
Related: XRP price reclaims $3, paving the way for 40% surges in October
XRP may initially test flag support at $2.93. A definitive close beneath it could validate a breakdown, potentially leading to $2.60, a reduction of nearly 15% from current values.
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 negate the bearish perspective, encouraging a resurgence towards $3 once more.
$500 million long squeeze could exacerbate the XRP sell-off
XRP’s $3 mark lies right between two significant liquidity zones, according to data provider CoinGlass.
On the higher end, there are substantial clusters of long liquidation levels ranging from $3.18 to $3.40.
For instance, at $3.18, the total short leverage is roughly $33.81 million, indicating that the market could ascend to activate stop orders if bulls regain dominance.
Conversely, the heatmap reveals even larger liquidation pools positioned between $2.89 and $2.73, exceeding $500 million.
XRP’s conclusive close beneath $3 could initiate a series of long liquidations towards $2.89–$2.73. Remaining above $3, however, allows for a potential stop-run to $3.20–$3.40.
This article does not offer investment guidance or recommendations. Every investment and trading action carries risk, and readers should perform their own analysis when making decisions.
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