Key Points
- Ripple’s (XRP) price dropped by 3%, trading as low as $2.78 on October 9 due to Bitcoin’s pullback.
- Despite the market downturn, XRP bulls are actively covering positions to prevent further losses.
Ripple’s (XRP) price underwent a 3% drop, hitting a low of $2.78 on October 9. This decline mirrors the wider market downturn triggered by Bitcoin’s retreat from its all-time highs, leading to a wave of liquidations. This correction pushed XRP below the $3 psychological support level. However, trading data from derivatives exchanges shows that bulls are actively covering positions to prevent further losses.
Leverage Positions and Market Flows
Coinglass’ Liquidation map, which monitors active leverage positions at crucial price levels, indicated that short traders were dominant in XRP activity on Thursday. Open short contracts amounted to $146 million compared to $95 million in longs. About $55 million in leveraged long contracts are gathered near $2.7, accounting for 58% of all active bullish leverage. This significant leverage cluster indicates an intention to defend key price levels below it.
Aggregate market flows also highlight XRP’s relative resilience. Total market liquidations surpassed $679 million, with Bitcoin and Ethereum bulls suffering the most significant losses, with $188 million and $181 million in liquidated long contracts respectively.
Despite being the fifth largest cryptocurrency by market cap, XRP bulls only lost $17 million in the last 24 hours. This is in contrast to lower cap assets like Dogecoin and Plasma (XPL) which experienced larger losses. This suggests that XRP traders chose to cover their positions on Thursday, rather than keeping up with the pace of the broader market sell-off.
XRP Price Forecast
From a technical standpoint, XRP’s current price setup reflects a developing double-bottom formation between $2.6 and $2.8, often interpreted as a bullish reversal pattern. The neckline is around $3.1, which also aligns with the mid-line of the Bollinger Bands (BB) and the 20-day simple moving average (SMA).
A decisive breakout above this level would confirm the double-bottom signal and could potentially trigger an upside continuation toward the projected bullish XRP price target at $3.6. Momentum indicators also provide a cautiously bullish backdrop. The Relative Strength Index (RSI) currently hovers at 41, suggesting near-oversold conditions. This positioning typically favors a short-term bounce, especially when coupled with compression on Bollinger Bands signaling potential volatility expansion.
If bullish leverage around $2.7 continues to hold, XRP may rebound toward $3.1 in the near-term, followed by a breakout attempt toward $3.6. Conversely, failure to sustain the $2.7 support could invalidate the pattern, raising the risk of a breakdown toward the lower Bollinger Band at $2.50.
