XRP suffered a sharp downturn on October 10th, causing significant liquidations. However, there are indications suggesting a potential medium-term bullish recovery. With crucial technical levels and fundamental catalysts in play, investors are divided: Can XRP aim for a new ATH?
The numbers speak for themselves: $610 million in long positions were wiped from the XRP futures market during this liquidation cascade. This brutal deleveraging demonstrates widespread overconfidence among traders who had massively bet on price appreciation. The domino effect triggered when the price breached several critical stop-loss levels, causing a chain reaction typical of highly leveraged markets.
This market purge isn’t necessarily negative from a structural perspective. It helps clear out excessive speculative positions and reduces artificially inflated open interest. On-chain data shows that the funding rate, previously strongly positive, has normalized toward neutral levels. This technical reset paradoxically creates healthier conditions for a potential rebound once selling pressure has been fully absorbed.
Market sentiment has shifted from euphoria to caution. Trading volumes exploded during the liquidation phase, signaling active participation but also extreme volatility. Seasoned traders know that these moments of maximum panic often represent opportunities—provided one can correctly identify support zones that truly hold.
Violent corrections like the one on October 10 have often preceded XRP’s strongest bullish phases. For those looking to position themselves at reduced prices before a potential rebound, Bitget offers an ideal entry point with a $10 bonus for all newly verified users.
The psychological and technical $3 level currently represents XRP’s main obstacle. This price zone has already rejected several bullish attempts, accumulating a significant concentration of sell orders. Sellers are defending this resistance with determination, aware that a breakout above this threshold could trigger a significant rally toward higher peaks.
Technical analysis reveals several contradictory indicators. The RSI plunged into oversold territory during the liquidation, suggesting possible bearish exhaustion in the short term. However, the 50 and 200-day moving averages are beginning to converge dangerously, a signal often heralding significant directional movements. The question remains in which direction this accumulated energy will be released.
Key support levels to monitor are around $2.50 and $2.20. If the price breaks these zones with significant volume, it could open the door to a deeper correction. Conversely, a confirmed rebound with recovery of the $2.80 level might indicate that buyers are regaining control and preparing a new assault on the $3 resistance.
Beyond technical analysis, several fundamental elements weigh on XRP’s price evolution. The regulatory context remains a major catalyst, with ongoing developments in the Ripple vs. SEC lawsuit. Each legal update has historically triggered significant price movements, creating uncertainty that markets despise.
The institutional adoption of RippleNet continues to progress despite price volatility. Several banking partnerships and cross-border payment initiatives maintain interest in the token’s real-world utility. This dichotomy between speculative price action and fundamental adoption creates a disconnect that some analysts consider a medium-term accumulation opportunity.
The correlation with Bitcoin and the general crypto market sentiment remains a determining factor. If BTC experiences a more pronounced correction, XRP would struggle to resist the general downward pressure. Savvy traders therefore keep a close eye on Bitcoin dominance and investment flows across the entire crypto ecosystem before taking aggressive positions.
Related topics:
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
