Key Takeaways:
XRP has dropped nearly 20% in 45 days, consolidating in a descending triangle near $2.70 support.
Futures and on-chain data show a leverage reset and early accumulation signs, reducing liquidation risks.
Technical confluence of a fair value gap, Fibonacci retracement, and fractal pattern points to a potential 60–85% rebound into Q4, with targets near $4.80.
XRP Extends Correction But Finds Support
XRP has been under pressure, slipping nearly 20% over the past month and a half as the token consolidates inside a descending triangle pattern. On the daily chart, XRP is repeatedly testing the $2.70 support, raising concerns of another breakdown.
Despite the correction, several market signals suggest that the downside could be nearing exhaustion, setting up conditions for a rebound.
Futures Data: Leverage Reset, Risks Reduced
Futures market activity highlights a cooling speculative environment:
Open interest has fallen from $11B to $7.5B, reflecting reduced speculative leverage.
XRP’s estimated leverage ratio on Binance has reset to its yearly average, a sign that traders are no longer overextended.
Funding rates have normalized to quarterly levels, indicating the clearing of crowded positions.
This leverage reset reduces the risk of cascading liquidations, supporting short-term price stability even as XRP consolidates.
On-Chain Signals: Accumulation Emerging
On-chain data also hints at early accumulation:
Net taker volume has moved closer to neutral, reducing sell-side pressure.
Aggregated spot cumulative volume delta (CVD) is showing an uptick, suggesting buyers are gradually stepping back in.
Futures CVD continues to decline, signaling reduced speculative aggression and a healthier setup for a rebound.
Technical Outlook: $2.35–$2.65 Fair Value Gap in Play
From a charting perspective, XRP’s $2.70 support is critical. If this level breaks, the token could slide into the $2.35–$2.65 fair value gap.
This zone aligns with Fibonacci retracement levels (0.5–0.618), a confluence that historically provides strong reversal zones. Analysts also note similarities with a Q1 fractal pattern that preceded a sharp breakout earlier in the year.
Analysts Eye $4.80 Target in Q4
Crypto trader Javon Marks highlights that XRP is holding above a key $2.47 level, reinforcing bullish potential.
“As long as this level holds, prices may only be prepping for another +66% upside,” Marks noted, maintaining a target near $4.80.
If the fractal pattern plays out again, XRP could rebound 60–85% in Q4, putting the token on track to retest its yearly highs.
XRP Price Levels to Watch
Support: $2.70, $2.47, $2.35–$2.65 (fair value gap)
Resistance: $3.00, $3.70, $4.80 (bullish target)
