XRP (XRP-USD) continued its steep slide on October 17, falling 7.54% in the past 24 hours to trade at $2.21. The drop comes after the token lost critical support at $2.47, triggering a wave of panic selling that pushed 24-hour trading volume up by more than 62.9% to $8.89 billion. At the same time, XRP’s market capitalization fell by over 7%.
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The price drop comes against a backdrop of broader market weakness. The global crypto market cap has slid nearly 6% to $3.5 trillion, with large-cap tokens like Bitcoin and Ethereum also under pressure. BTC was last seen at $105,182 while ETH hovered around $3,736.
XRP’s Technical Signals Point to More Downside
XRP’s technical indicators are flashing red. The Relative Strength Index has dropped to 28.92, well into oversold territory. This typically suggests that bearish momentum remains strong and that further losses could follow without a sharp reversal. The Average Directional Index is also elevated at 37.39, indicating the current downtrend is not only intact but strengthening.
For XRP to avoid steeper losses, it must hold the $2.20 level. A break below that could send the token down to the next key support at $2.00. On the upside, XRP would need to climb back above $2.50 with meaningful volume to have any shot at reversing its current bearish trajectory.
Investors Shaken Despite Recent Acquisitions
Adding to the confusion is the fact that XRP is falling even after positive corporate news. Ripple recently acquired GTreasury, a corporate treasury infrastructure firm, in a move aimed at strengthening its liquidity and payments operations. While the acquisition was seen as a step toward expanding Ripple’s enterprise use cases, it failed to inspire confidence amid the wider market sell-off.
Buyback Plans Could Offer Price Support
In separate news, Ripple is reportedly planning to purchase up to $1 billion worth of XRP tokens through a special purpose acquisition company (SPAC), according to a Bloomberg report. The buyback will form part of a new digital asset treasury, which will include newly acquired XRP along with some of Ripple’s existing holdings.
If finalized, this initiative could provide price support over the medium term. The buyback would effectively reduce circulating supply and could help counterbalance bearish sentiment if Ripple executes the plan at scale.
While the market is still digesting the impact, some analysts see the move as a vote of confidence in XRP’s long-term potential. However, given the current market mood, it may take more than corporate actions to break the bearish momentum.
In Conclusion
XRP is facing a tough technical and emotional environment, especially with oversold indicators confirming intense selling pressure. The token’s ability to hold the $2.20 support level may define its short-term trajectory. Ripple’s $1 billion buyback could offer a much-needed psychological boost, but for now, the path of least resistance appears to be down unless broader market conditions improve.
At the time of writing, XRP is sitting at $2.2864.
