XRP Faces Pressure After $500M in Liquidations
The cryptocurrency market witnessed significant turbulence this week, with XRP plunging nearly 4% to touch the crucial $2.90 support level. According to the latest report from CoinDesk, the sharp decline followed a wave of $500 million in liquidations triggered by institutional selling and broader market weakness. Traders and investors are now closely watching whether XRP can sustain its position within the $2.85–$2.87 support band—a critical level that could determine its short-term direction.
The drop in XRP came after multiple failed attempts to break the $2.99 resistance zone, signaling strong overhead selling pressure. Market data shows that trading volume spiked to nearly seven times the daily average during the sell-off, confirming that major players are repositioning their holdings ahead of key regulatory and macroeconomic events.
XRP Price Prediction: Can the $2.85 Support Hold?
The near-term XRP price prediction remains cautious as traders assess the token’s ability to maintain support above $2.85. A decisive breakdown below this level could push XRP toward the $2.70 zone, while a strong rebound may spark a recovery back to $3.00 resistance.
Technical indicators point to a bearish short-term trend, characterized by lower highs under the $3 mark. However, the late-session recovery from $2.858 to $2.881 suggests some stabilization, potentially setting the stage for a short-term bounce if buying volume increases.
Experts believe that if Ripple successfully navigates its current regulatory challenges—including the U.S. Office of the Comptroller of the Currency (OCC) review for a national banking charter—it could inject fresh optimism into XRP price prediction models for Q4 2025.
Ripple’s Regulatory Battle and Market Sentiment
Ripple’s bid for a U.S. banking charter has faced increased scrutiny, with the October 7 OCC deadline marking a pivotal point for its regulatory standing. The outcome of this process could have significant implications for XRP’s legal status and long-term adoption by institutional investors.
Meanwhile, global macroeconomic factors—ranging from trade tensions to diverging central bank policies—continue to influence market sentiment. These challenges have constrained liquidity across major cryptocurrencies, adding further uncertainty to the XRP price prediction outlook.
On-chain data reveals a mixed picture: Binance custody reserves rose nearly 19% over the past week, indicating distribution pressure, even as some whale accumulation continued. This suggests that while some investors are exiting positions, others view the current price range as an attractive entry point for long-term growth.
Technical Outlook for XRP
- Resistance Levels: $2.99–$3.00 remains a key ceiling; a break above could trigger a retest of $3.20.
- Support Levels: $2.85–$2.87 forms the first line of defense; failure to hold could send prices toward $2.70.
- Volume Trends: Trading volume surged sevenfold, highlighting heavy institutional activity.
- Momentum: Short-term stabilization seen, but overall sentiment stays fragile until a confirmed reversal occurs.
Given these dynamics, analysts are split on the XRP price prediction for the coming weeks. Some expect a rebound toward $3.10 if Ripple’s regulatory news turns positive, while others warn of potential declines below $2.70 if bearish momentum persists.
Broader Crypto Market Impact
The XRP price dip came as part of a larger market correction, with over $500 million in leveraged positions liquidated across major exchanges. Bitcoin remains above $122,000, but analysts warn that further volatility in BTC could spill over into altcoins like XRP.
If Bitcoin stabilizes and investor sentiment improves, XRP price prediction models may trend bullish again, with forecasts pointing toward a recovery to $3.50 by late October. Conversely, sustained weakness in macro indicators could keep XRP trapped below the $3 resistance for several weeks.
Final Thoughts on XRP Price Prediction
As of now, XRP is at a crucial juncture. Holding the $2.85 support will be essential for maintaining bullish hopes in the short term. Investors are advised to monitor regulatory updates, whale movement, and overall market sentiment before making significant moves.
The XRP price prediction for the rest of October depends heavily on Ripple’s ability to secure regulatory progress and sustain investor confidence amid volatile market conditions.
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