From free fall to rebound, trade war shakes markets
XRP, the digital asset that powers the XRP Ledger (Ripple protocol), nosedived on Friday, Oct. 10, reaching its lowest level since December.
Summary
- Ripple’s XRP token tumbled 63% from its yearly high to $1.37 before bouncing back 75%, triggering $700 million in liquidations and vindicating chartist Peter Brandt’s bearish warning.
- The drop came amid a $300 billion crypto selloff fueled by escalating U.S.–China trade tensions.
- While XRP has since stabilized — helped by ETF inflows and hopes for new approvals — analysts warn volatility will persist as technical indicators flash both risk and potential recovery.
XRP price crash confirms analyst forecast
Ripple (XRP) token plummeted to a low of $1.3758, down by over 63% from its highest point this year. This plunge led to a $700 million surge in liquidations.
The XRP price crashed and then bounced back by over 75% as investors bought the dip. This plunge confirmed what analyst Peter Brandt warned in an X post: “On the left is a classic descending triangle from Edwards and Magee, showing what descending triangles are supposed to do. On the right is a developing descending triangle. ONLY IF it closes below 2.68743 (then I’ll be a hater), then it should drop to 2.22163.”
Brandt’s target price was $2.2, which was hit as the crypto market crashed on Friday.
Cryptocurrencies dropped as investors reacted to the new trade war between the U.S. and China. Trump announced a 130% tariff on Chinese goods, with China expected to respond with similar retaliatory measures.
The U.S. president cited the recent actions by Beijing, including blocking soybean imports from the US, new tariffs on U.S. ship docking in China, investigations into U.S. technology companies, and new limits on rare earth exports.
The crypto crash resulted in over $300 billion in losses, as the market capitalization of all coins plummeted to $3.7 trillion. Liquidations jumped to nearly $20 billion in the crypto industry.
Still, XRP price has potential catalysts, including the ongoing ETF inflows and the upcoming spot ETF approvals. Data by ETF.com shows that the XXRP, UXRP, and XRPR ETFs have had substantial inflows since their approvals.
Ripple price technical analysis
The daily chart shows that the XRP price peaked at $3.6553 in July and then plunged to a low of $1.3758 on Friday. This plunge occurred after the coin formed a descending triangle pattern, a standard bearish indicator.
The drop also invalidated other bullish patterns, such as the falling wedge, bullish flag, and cup-and-handle. It also slipped below the 50-day and 100-day Exponential Moving Averages.
On the positive side, the coin has formed a giant hammer candlestick pattern — one of the most common bullish reversal patterns in technical analysis.
Therefore, the most likely scenario is where the XRP price is volatile as the trade war escalates. It may rebound and retest the resistance at $2.70 and then resume the downtrend in the near term.
