XRP Price Drops 15% in 3 Days – Is Ripple’s Legitimate Downfall Marking the Bottom?

XRP (XRP) is down nearly 15% so far in October, with the loss mainly due to renewed appeals against Ripple by the United States Securities and Exchange Commission (SEC).

However, for some analysts, XRP's decline may be a buying opportunity rather than a cause for concern. In particular, historical price patterns and recent whale stocks suggest that XRP price may be poised for a major rally in the coming months.

XRP price eyes balanced triangle breakout

Analyst CryptoBull highlighted the similarities between XRP's current price behavior and the bull market trend of 2017.

During that time, XRP strengthened to a high of $3.31 in a congruent triangle pattern before breaking out and surging by 66,240%. As of October 2024, the asset is approaching the apex of a similar triangle structure as seen on the monthly chart.

Such patterns are often preceded by strong directional movements, and if XRP follows historical precedent, a breakout could lead to significant gains.

In a congruent triangle, especially on the upside, they tend to be flashier, with price gains corresponding to the height of the triangle over a wider area.

For XRP, the peak of the current symmetrical triangle is around $0.52. If the price breaks the trend above this level around June 2025, the pattern's potential upside target would be closer to $23.40, which would represent a staggering increase of over 4,200% in the coming years.

XRP price headwinds and technicals

The SEC's appeal in the case of Ripple could cause a huge headache for XRP's bullish setups, especially if the agency successfully argues that the secondary sale of XRP to retail investors violated US securities laws.

If this happens, XRP may break below the trend low of the current symmetrical triangle pattern, a level that coincides with the 50-month exponential moving average (50-month EMA, red wave) and the 0.236 Fibonacci retracement line.

At the time of the breakout, the next price target is the 0.0 Fib line at $0.11, a 78.25% drop from current price levels.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.