XRP experienced a 9% drop over the week, settling at $1.41 and testing its 200-day moving average, which is 61% lower than its peak of $3.65.
Ripple’s recent four institutional agreements did not boost XRP’s price, as partners can use Ripple’s solutions without needing to hold XRP tokens.
Investors in XRP funds were already at a loss, having invested $1.79 billion while their holdings were valued at only $1.66 billion as of October 4.
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XRP (CRYPTO: XRP) has seen a 9% decline leading up to October 9, 2026, testing its 200-day moving average, a crucial indicator for assessing long-term performance. As of October 10, XRP is priced at $1.41, slightly lessening its weekly loss to 5.2%, but remains around 61% below its all-time high of $3.65.
This fall coincided with Ripple’s announcement of four key partnerships. Furthermore, the CFTC clarified that XRP is classified as a digital commodity. The return of XRP to its 200-day average raises the question: is this a buying opportunity or the onset of a downtrend?
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Understanding the 200-Day Average of XRP
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The 200-day moving average tracks the average closing price of XRP over the last 200 days, updated daily for a smoothed out trend. At present, XRP is approaching this essential average, which emphasizes recent price changes and reacts quickly to shifts in the market.
This average is crucial for traders who often set buy and sell orders based around it. However, it’s important to note that moving averages don’t guarantee future price movements; a significant sell-off can pull XRP below this significant threshold.
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When XRP maintains a position above its 200-day average, it typically signals an upward trend in the long-term, whereas a dip beneath it suggests the possibility of a downturn. Recently, XRP’s 50-day moving average crossed above the 200-day average, a scenario known as a golden cross, viewed by traders as a bullish indicator. However, if XRP continues closing under the 200-day average, this positive outlook could be reversed.
Assessing the Impact of Ripple’s Institutional Agreements on XRP’s Decline
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Ripple made news with four significant institutional partnerships announced during the same week, including:
A collaboration with a South Korean securities firm.
A custody arrangement with a major firm, enabling institutional clients access to XRP.
Integration with another settlement network employed by financial institutions for transaction finalization.
A partnership with a prominent hedge fund manager.
Despite these developments, XRP’s value still fell by 9%. One of the reasons could be that institutional agreements often take a significant amount of time to yield revenue. Additionally, partners can benefit from Ripple’s technology without necessarily having to hold XRP tokens, and there was no financial transparency provided regarding these agreements, leaving traders without specific insights.
Moreover, leveraged trading added to market pressure. If prices decline, exchanges can forcibly close out positions of traders using borrowed funds, leading to an influx of tokens for sale. By October 9, liquidations across the cryptocurrency market reached approximately $1 billion, intensifying the downward trend despite Ripple’s positive announcements.
Insights from Long-Term XRP Holders During Price Declines
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For long-term investors, a drop in price can present a more attractive buying opportunity compared to purchasing at higher levels. This strategy assumes that Ripple’s collaborations will eventually drive demand for XRP tokens. However, none of the recent announcements have yet secured commitments from institutions for XRP purchases.
Recent buyers may also face losses. As of October 4, data reveals that investors in XRP funds had put in $1.79 billion but held only $1.66 billion. While XRP’s current price may look like a bargain based on historical figures, further price drops remain a possibility.
Is XRP’s Plunge to Its 200-Day Average a Buying Opportunity?
Currently, XRP is approaching its 200-day average but has not confirmed a sustained rise above this level. As such, anyone contemplating a purchase must consider the risk until more clarity emerges. Recent institutional updates do not provide solid guidance for anticipating XRP’s next trajectory, and the CFTC’s endorsement didn’t bolster its price either.
To position XRP as a true buying opportunity, it must consistently close above the 200-day average throughout October. Additionally, it would need to recover to the recent peak of $1.51 seen on October 5 and rectify the 9% weekly loss. Failure to maintain above this essential average may lead to a bearish shift in its long-term outlook, reversing any encouraging trends from late September.
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