Has the latest XRP correction run its course, or could prices suffer further declines before the bullish trend resumes?
XRP has come under fresh selling pressure after dropping from $1.52 to a low of $1.31 by Oct. 8, a decline of roughly 14% in less than two days. Since then, XRP has recovered to around $1.40, giving traders some hope that the worst of the sell-off may have passed.
However, the recent recovery does not confirm that the correction has ended. The main question is whether XRP can build on its gains and resume its upward move or whether sellers will push the price lower.
XRP Faces Correction After Rally
XRP’s recent decline followed a strong rally that lifted its price by 46% over the previous 90 days. The gains pushed its market cap to $93.7 billion, accounting for roughly 3.3% of the total cryptocurrency market. Before the correction began, XRP reached a recent high of $1.6697.
The subsequent drop to $1.31, followed by a recovery to around $1.40, has left XRP at an important point. The 4-hour chart shows the current price movement as a corrective wave. Such pullbacks often follow strong rallies and may take time to finish.
Two possible outcomes may arise from here. XRP could be forming a base for another rally, or the recent recovery could prove temporary before the price resumes its decline. The next moves around key price levels could help traders determine which scenario is more likely.
The Bullish Case
The bullish outlook suggests that XRP’s recent pullback could help establish a base for another upward move. The four-hour chart shows two nested wave structures that could support further gains. In this scenario, XRP is consolidating before beginning another strong advance.
However, the chart has yet to confirm this possibility. XRP needs to break out of the corrective channel that has contained its price movement since the October peak. It must also produce a clear upward move that shows buyers have regained control of the market.
The first important level to watch is $1.51945. A decisive break above this price, followed by a sustained hold, would strengthen the bullish outlook.
It would also put the next targets at $1.72964, $2.11767, and $2.39911 in focus. Until XRP moves above $1.51945, traders have little technical confirmation that the correction has ended.
The Bearish Case
The bearish outlook suggests that XRP’s correction may not be over. Instead of completing a simple pullback, the token could be forming a larger sideways pattern that requires another decline before the correction can finish.
With this interpretation, the drop from the recent high represents more than a temporary dip. It could be the final stage of a larger correction on the weekly chart, leaving XRP exposed to further losses despite its recent recovery.
The main support level to watch is $1.37959. If XRP falls below this price, the likelihood of a deeper correction would increase. The next downside target would be $1.33098, while a more severe decline could take the token to $1.10330.
A drop below $0.98427 would invalidate the broader bullish structure. Reaching this level would likely require a massive deterioration in market conditions, making it a more severe bearish outcome than the immediate downside scenarios.
Bitcoin and Macro Forces Matter Too
XRP’s price direction also depends on the broader cryptocurrency market. If Bitcoin enters a deeper correction, its decline could drag other cryptocurrencies lower, including XRP. This could happen even if XRP’s own chart shows signs of strength.
However, cryptocurrencies do not always follow the same price patterns during market sell-offs. Some assets can hold up better than others, so traders must continue to watch XRP’s own price structure rather than rely entirely on Bitcoin’s movements.
Macroeconomic developments could also affect XRP. The Federal Reserve’s Oct. 27-28 meeting is an important event to watch as markets assess the direction of interest rates. According to CME FedWatch, traders were pricing in an approximately 17.7% probability of a rate hike.
If the Federal Reserve raises rates, higher borrowing costs could put additional pressure on riskier investments such as XRP. This would add another challenge for buyers trying to push the price higher.