Ripple's $1 Billion Buyback Initiative Struggles to Influence XRP Prices

Key Highlights:

XRP’s value declined by 8.75% on Friday following Ripple’s announcement of a $1 billion acquisition initiative.
Analysts predict the price might approach the $2 support level shortly, with a potential for recovery.

Ripple has revealed plans to invest $1 billion in acquiring XRP for its digital asset treasury, positioning it as a leading holder of the cryptocurrency. However, traders largely overlooked this news, as the XRP price fell 8.75% after the announcement on October 17. This decline maintained an ongoing downtrend.

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

Will XRP Recover from Its Current Downturn?

In a broader view, XRP has been moving within a falling wedge pattern after a severe dip in the cryptocurrency market recently.

The price could move back toward the $2 support level, which aligns with the lower edge of the wedge and serves as a possible reversal marker.

XRP/USDT four-hour chart.
Source: TradingView

If the price breaks above the wedge’s upper boundary, it might rise toward the range of $2.36–$2.75, an increase of 5-20% from its current position in October.

Additionally, significant potential short liquidations in this region could propel XRP toward the $3 mark, coinciding with psychological resistance and the upper edge of the descending triangle pattern.

XRP/USDT weekly chart.
Source: TradingView

On the other hand, closing below the $2 mark could negate the wedge pattern, exposing XRP to further declines towards $1.65 by month-end.

Long-Term Outlook: Maintaining Potential for a Breakout

In long-term analysis, XRP continues to uphold its breakout scenario from an ascending triangle despite experiencing a significant drop last week.

Presently, it is sustaining above the triangle’s lower line near $2.25 while aiming for a rebound to the upper limit around $3.55.

XRP/USDT weekly price chart.
Source: TradingView

A breakout past $3.55, supported by substantial trading volume, could elevate the price to $7.75, which would indicate a 250% growth from current figures by early 2026.

This article should not be interpreted as investment advice or recommendations. All investments and trading decisions come with inherent risks, and it is advisable to conduct thorough research before making any decisions.