Key takeout:
XRP (XRP) has been repeatedly broken beyond the $3 level since the November 2024 boom, but each attempt ended with a fake out, followed by a deeper fix.
On Saturday, that price again fell below $3 support, matching the 200-4H index moving average (EMA; Green Wave).
Could XRP prices drop even further in the coming days? Let’s look into it.
XRP Chart Fractal plays 15% fix
XRP mirrors bearish fractals that could cause a 15% drop to $2.60 over the next few days.
In September, the token price formed a round top, then slipped into a period of symmetrical triangle integration before breaking down sharply. The move has knocked the XRP price down to an area of $2.70.
A similar sequence will play again in October.
On the four-hour chart, XRP forms another round top and integrates within the bearish flag. This structure often results in a lower separate legs, as well as the maximum distance between the top and bottom trend lines.
The 4-hour relative strength indicator (RSI) has been corrected from an excess of over 70 and contributes to this risk as there is room for decline before an excess of 30 threshold.
Related: XRP Prices Recover $3 and pave the way for 40% profit in October
XRP can first test flag support for $2.93. The decisive closure below that could confirm a breakdown, potentially paving the way to $2.60, down nearly 15% from the current price.
Its drawbacks are consistent with XRP’s 200-day EMA (blue waves on the chart below).
A 20- ($2.93) or 50-day ($2.52) bounce will neutralize the bearish outlook and once again encourage a rebound to $3.
A $500 million long squeeze can promote the sale of XRP
According to data resource Coinglass, the $3 level of XRP lies between two heavy liquidity pockets.
The advantage is that there are thick clusters with long liquidation levels between $3.18 and $3.40.
For example, at $3.18, the cumulative short leverage is around $33.81 million, suggesting that if Bulls regain control, the market could move upwards to trigger a stop order.
On the downside, however, the Heatmap highlights an even larger liquidation pool that has been stacked between $2.89 and $2.73, more than $500 million.
The decisive end of XRP could fall below $3. However, if you hold more than $3, the space to stop is between $3.20 and $3.40.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
