Ripple's Billion-Dollar Acquisition Strategy Fails to Propel XRP Prices: Can a Rebound Occur?

Key Points:

XRP’s value decreased by 8.75% on Friday in spite of Ripple’s $1 billion buyback initiative.
A decline towards the $2 support mark is anticipated in the upcoming days as investors hope for a rebound.

Ripple intends to acquire $1 billion worth of XRP for its digital asset treasury, potentially positioning itself as the largest corporate holder of this established cryptocurrency. Nevertheless, XRP enthusiasts appeared to disregard this news last Friday, with prices dropping significantly post the October 17 announcement, as seen in the charts below.

XRP/USD four-hour price chart. Source: TradingView

Can XRP Continue Its Downward Trend?

XRP has been oscillating within a declining wedge pattern since last week’s downturn in the crypto sector, which saw a record liquidation of over $20 billion in positions. Prices might test the $2 support level again, aligning with the wedge’s lower edge, pointing to a possible reversal area.

XRP/USDT four-hour chart. Source: TradingView

A breakout beyond the wedge’s upper trendline could instigate an upward move to the $2.36 to $2.75 range, representing a potential increase of 5-20% from the current price.

This target zone contains levels with significant short positions, as indicated by CoinGlass data, which might fuel price momentum towards $3, a key psychological resistance that coincides with the upper boundary of XRP’s descending triangle.

Binance’s XRP/USDT liquidation heatmap. Source: CoinGlass

On a longer-term perspective, XRP appears to maintain a bullish trajectory despite a sharp 60% drop during the prior week’s “black Friday” event. Currently, XRP remains above the ascending triangle’s lower trendline, aiming for a rebound towards the upper trendline around $3.55.

XRP/USDT weekly price chart. Source: TradingView

A definitive breakout above $3.55 with robust trading volumes could propel the price to as high as $7.75 by early 2026, which would signify a 250% rise from current values.

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