Ripple (XRP) Price Forecast: Will $55M Leverage Support Prevent Breakdown to $2.50?

Core Insights - Ripple's price has decreased by 3%, reaching a low of $2.78 on October 9, reflecting a broader market decline driven by Bitcoin's pullback from its all-time highs [1] - Despite the downturn, XRP bulls are actively covering positions to mitigate further losses, indicating a defensive strategy among traders [1][4] Market Activity - Short traders have dominated XRP activity, with $146 million in open short contracts compared to $95 million in long contracts, highlighting a bearish sentiment [2] - A significant cluster of leveraged long contracts, approximately $55 million, is positioned near $2.7, representing 58% of all active bullish leverage, suggesting a strong intent to defend this price level [2] Liquidation Context - Overall market liquidations reached $679 million, with Bitcoin and Ethereum experiencing the largest losses of $188 million and $181 million in liquidated long contracts, respectively [3] - XRP bulls experienced a relatively minor loss of $17 million in the last 24 hours, indicating resilience compared to lower-cap assets like Dogecoin and Plasma (XPL) [4] Technical Analysis - XRP's price setup is forming a double-bottom pattern between $2.6 and $2.8, which is typically seen as a bullish reversal signal, with a neckline around $3.1 [5] - A breakout above $3.1 could validate the double-bottom pattern and lead to a price target of $3.6, supported by momentum indicators suggesting near-oversold conditions [6] Future Projections - If the bullish leverage around $2.7 holds, XRP may rebound towards $3.1, with a potential breakout attempt towards $3.6 [7] - Conversely, failure to maintain support at $2.7 could invalidate the bullish pattern, increasing the risk of a decline towards the lower Bollinger Band at $2.50 [7]