Key Points:
Despite Ripple's announcement of a $1 billion buyback plan, the price of XRP fell 8.75% on Friday.
In the coming days, the price may test the $2 support level, with bulls hoping for a rebound.
Reports indicate that Ripple plans to raise $1 billion to purchase XRP as part of its digital asset treasury. This move could position Ripple among the top five cryptocurrency holders globally.
The market's reaction to this news has been limited. As shown in the chart below, following the announcement on October 17, the price of XRP dropped 8.75% on Friday, continuing its previous downward trend.
Can XRP break the current downtrend in October?
Overall, after a significant drop in the crypto market last week, with over $20 billion in positions liquidated, XRP has been oscillating within a descending wedge consolidation range.
The price may further test the $2 support level, which coincides with the lower boundary of the wedge and is a potential reversal area.
A breakout above the upper trend line of the wedge could trigger a move upward to the $2.36 to $2.75 range in October, representing a 5-20% increase from current price levels.
According to CoinGlass data, the cumulative short leverage in this range is as high as $118.76 million.
Potential short liquidations at these levels could increase momentum, pushing the price to $3, a psychological resistance target that aligns further with the upper boundary of the XRP descending triangle pattern.
Conversely, if the price closes below $2, it would invalidate the wedge setup, and further downward pressure could push the price toward $1.65 before the end of the month, which is the 0.618 Fibonacci retracement level.
On the long-term chart, despite a 60% drop during last week's "Black Friday," XRP still maintains its ascending triangle breakout scenario.
As of Friday, the cryptocurrency remains above the lower trend line of the triangle, close to $2.25, while aiming for a rebound near the upper trend line at $3.55.
If it breaks above $3.55 with significant volume, the price could reach $7.75 by early 2026, representing a 250% increase from current levels.
Related: Cathie Wood's ARK Invest increases its bullish stock position by $12 million amid a surge in options trading.
Original: “Ripple's $1 Billion Buyback Plan Fails to Lift Price: Can XRP Still Rebound?”
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