Ripple's Plan to Purchase $1 Billion in XRP: Will It Drive a Price Recovery?
Despite Ripple's intentions to buy back $1 billion worth of XRP, the cryptocurrency's price dropped significantly. Analysts speculate on its potential recovery in the upcoming weeks.
Holding above $2 enhances XRP’s chances to revisit the $3 mark soon while keeping a long-term target around $7.75.
Key Takeaways:
- XRP’s value fell by 8.75% on Friday despite Ripple’s major buying plans.
- A decline to the $2 support level appears likely as investors await a price rebound.
Ripple has announced a strategy to raise $1 billion to acquire XRP for its digital asset reserve, potentially positioning it as the largest corporate owner of this leading cryptocurrency globally.
Despite this, XRP investors largely disregarded the news on Friday, watching as the price dropped significantly after the announcement on October 17, continuing a downward trend.
XRP/USD four-hour price chart. Source: TradingView
Can XRP escape its ongoing downtrend this October?
XRP Seeks Recovery Following a Test of $2 Support
XRP has been trading within a descending triangle pattern in the wake of last week’s crypto market crash that resulted in the liquidation of over $20 billion in positions.
The price is expected to decline towards the $2 support, aligning with the lower edge of the triangle and acting as a possible area for reversal.
XRP/USDT four-hour chart. Source: TradingView
A breach above the triangle’s upper boundary could lead to a rise toward the range of $2.36–$2.75, estimating an increase of 5-20% based on current value levels this month.
Future Prospects: XRP Aiming for a Breakout
Long-term analyses show that XRP is still positioned for a potential breakout, maintaining its ascending triangle scenario despite suffering a 60% decrease during the last week’s market crash.
As of Friday, the crypto was above the triangle’s lower trendline around $2.25, targeting a potential rise to the upper line near $3.55.
XRP/USDT weekly price chart. Source: TradingView
A breakout surpassing $3.55 with solid trading volumes could propel the price up to $7.75, marking a remarkable 250% increase from current prices by early 2026.
This article does not provide investment advice, and decisions should be made after careful consideration and research.
