XRP Price Prediction: Weekly pump of 11.4% outperforms alts, long positions break through the challenge of 3.15 USD

XRP closed up 11.4% over the weekend, performing strongly and outpacing most major altcoins, reigniting bullish sentiment across the market. On October 27, the trading price approached $2.62, with a trading volume exceeding $3.68 billion in the past 24 hours. The technicals show that XRP is forming a descending triangle pattern, with $2.72 being the key breakout level, targeting $3.15 after the breakout.

Weekly pump 11.4% leading the alts market

(Source: Trading View)

XRP's performance this week has been particularly outstanding among mainstream alts. A weekly pump of 11.4% not only surpassed Ethereum's 3.2% and Cardano's 5.7%, but also significantly outperformed most of the top twenty cryptocurrencies. This relative strength provides an important market sentiment indicator for XRP price predictions, showing that funds are flowing into XRP.

The 24-hour volume of 3.68 billion USD is also worth noting. This figure indicates a very high market activity for XRP, providing sufficient liquidity to support large transactions and reduce slippage risk. High volume is usually accompanied by amplified price volatility, which means that both breakouts and pullbacks could experience significant price movements.

From a market capitalization perspective, the scale of 157.4 billion USD keeps XRP firmly in fourth place globally among cryptocurrencies, only behind Bitcoin, Ethereum, and Tether. This market cap provides a certain level of stability for XRP, making it less susceptible to manipulation by a single large holder compared to small market cap coins. At the same time, a circulating supply of 60 billion coins means that even small price changes represent billions of dollars in market cap fluctuations.

The fundamental support for this wave of pump comes from Ripple's continued expansion in the global payments sector. The cooperation between Ripple and several banks and financial institutions is deepening, and the volume of cross-border payment transactions processed by its RippleNet network continues to grow. More importantly, institutional participation has increased, and this recognition from the traditional financial sector provides long-term value support for XRP.

Descending Triangle Pattern Alerts Technical Risks

Despite a strong performance this week, the technical structure of the XRP price prediction remains cautious. The token is forming a descending triangle pattern characterized by lower highs around $2.71 and a flat bottom at $2.26. This pattern typically indicates that bullish momentum is weakening, and if the resistance level fails to break, it may continue the retracement phase.

The descending triangle is one of the classic technical analysis patterns, consisting of a series of progressively lower highs and a horizontal support level. The formation process of this pattern reflects the ebb and flow of market forces: the willingness of buyers is weakening with each price rebound, while sellers remain firm above the support level. When this pattern approaches its conclusion, a directional breakout typically occurs, either breaking upward through the resistance line or breaking downward through the support level.

Key technical signals include:

Death Cross: 20-day EMA ($2.54) is below 50-day EMA ($2.69), indicating that the short-term trend is weaker than the mid-term trend, and sellers still have the upper hand.

RSI Neutral to Weak: The RSI is near 52, rebounding from oversold conditions, indicating moderate buying interest, but no strong signals of a trend reversal have yet appeared.

K-line Hesitation Pattern: The recent appearance of spinning tops and doji candles over the past few trading days is a typical sign of indecision before an increase in market volatility.

The relationship between the 20-day EMA and the 50-day EMA is an important indicator for determining trends. When the short-term moving average is below the long-term moving average, it is usually seen as a bearish signal, indicating that the average cost of investors who bought recently is lower than that of earlier buyers, and the market lacks the momentum for sustained upward movement. To reverse this technical disadvantage, XRP needs to continue rising to make the 20-day EMA cross above the 50-day EMA, forming a golden cross.

The RSI at 52 is worth a close interpretation. An RSI below 30 is typically considered oversold, while above 70 is deemed overbought. A reading of 52 is in the neutral zone, slightly on the downside, indicating that the market is neither excessively pessimistic nor overly optimistic. The rebound from an oversold state to 52 shows that buying pressure is entering the market, but the strength is not yet sufficient to push prices into a strong zone. If the RSI can break above 60 and maintain that level, it will significantly enhance the credibility of the bullish narrative.

The appearance of spinning tops and doji candlestick patterns typically indicates market indecision. The characteristic of a spinning top candlestick is a small body with long upper and lower shadows, showing significant price fluctuations during the trading period but ultimately closing near the opening price. A doji, on the other hand, has an opening price that is nearly equal to the closing price, forming a cross shape. These candlestick patterns often occur before trend reversals or significant volatility, alerting traders that the market is at a critical turning point.

2.72 USD key breakout level determines direction

XRP must decisively break through $2.72 to regain momentum. This price level is the resistance line of the upper boundary of the descending triangle and also a technical resistance area formed by multiple high points. Otherwise, it may confirm the resistance level, pulling the price back to $2.26 or even $2.02, where previous historical demand had stabilized the market.

Why is $2.72 so critical? From a technical analysis perspective, this price level is a decisive point for the descending triangle pattern. If the price can effectively break through and hold above this level, it will declare the failure of the descending triangle, breaking the bearish narrative. Such a breakout usually triggers a chain reaction of stop-loss orders and chasing buy orders, driving the price up rapidly. Conversely, if it faces resistance again here, it will reinforce the effectiveness of the resistance level, increasing investors' panic.

From the perspective of trading volume analysis, a valid breakout must be accompanied by an increase in volume. If the volume decreases during a breakout, it often signals a false breakout, and the price may quickly retreat. Traders should closely monitor the volume changes around $2.72, as the validity of the breakout can only be confirmed when the volume significantly increases. Ideally, the volume during the breakout should reach at least 1.5 times the recent average level.

If it successfully breaks through 2.72 USD, the next target naturally points to 3.15 USD. This price level is the previous volatility high point, representing the area for the release of earlier trapped positions. In technical analysis, previous highs often become new resistance levels because investors who were previously trapped at that price level tend to exit when the price returns near their cost. Therefore, even if it breaks through 2.72 USD, the path to 3.15 USD will not be smooth.

The reverse scenario also requires attention. If XRP fails to break through the $2.72 resistance and drops below the $2.26 triangle bottom support, it will confirm the bearish pattern of the descending triangle. This breakdown is often accompanied by panic selling, targeting the next support level at $2.02. The $2.02 level previously provided strong support during earlier corrections, with a significant amount of buy orders concentrated in that area. If tested again, it may form a double bottom pattern.

Trading Strategies and Risk Management

From a trading perspective, XRP price prediction is at a technical crossroads. Short-term traders are closely monitoring the range of $2.70 to $2.72 to confirm a breakout. If a successful close above this level occurs, it could open the way to $3.15. Conversely, if the breakout at this resistance level fails, it may reignite bearish momentum.

Bullish Scenario Trading Setup:

Entry Point: Go long after confirming a breakout above $2.72

Target Price: First target $3.00 (psychological level), second target $3.15 (previous high)

Stop Loss Price: Below $2.54 (below 20-day EMA)

Risk-Reward Ratio: Approximately 1:2.4 (Risk $0.18, Potential Gain $0.43 to $3.15)

Bearish Scenario Trading Setup:

Entry Point: Short when encountering resistance and falling back around $2.70

Target Price: First target $2.26 (triangle bottom), second target $2.02 (historical support)

Stop Loss Price: Above $2.75 (confirmation of breakout failure)

Risk-Reward Ratio: Approximately 1:3.3 (Risk $0.13, Potential Profit $0.44 to $2.26)

Risk management is particularly important in the current market environment. The descending triangle pattern indicates that the market is at a decision-making stage, and the direction is still unclear. In this situation, conservative position management and strict stop-loss settings are crucial. It is recommended that the risk of a single trade does not exceed 2% of the total capital, and positions should be gradually increased based on the strength of the confirmed breakout.

In summary, although the weekly pump of 11.4% for XRP highlights the market's growing bullish sentiment, technically, the token is still constrained by a descending triangle. A clear breakout is needed to confirm whether this rebound is the start of a larger-scale recovery or just a brief pause before the next round of pullback.