XRP experienced two significant rebounds around the $1 mark this summer, followed by a notable increase. However, a recent decline has traders focusing on a vital support area that could either affirm the cryptocurrency’s recovery or push prices back to their summer lows.
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XRP (CRYPTO: XRP) formed a double-bottom chart pattern near the $1 threshold this summer. It dipped to approximately $1.01 on June 26, 2026, and then closed at around $1.03 on August 6, leading buyers to step in. After that, the cryptocurrency surged by nearly 46%, reaching $1.53 by late September.
However, XRP has since retreated from those heights. As of October 10, it was trading around $1.41, marking a decline of roughly 5% for the week and sitting about 61% below its all-time high of $3.65.
This raises an important question: Is the XRP double bottom pattern still valid, or are we heading back toward the summer lows?
Understanding the Double Bottom Pattern and When It Is Validated
A double bottom pattern resembles the letter “W.” It occurs when the price decreases to a certain threshold, rebounds, dips again to a similar low, and then stabilizes at this lower point. Traders interpret this second stabilization as a sign that buyers are recognizing value at the same price range.
Validation of this pattern happens when the price closes above the peak between the two lows, referred to as the neckline. Traders often seek lower trading volumes during the second dip, indicating a loss of selling pressure.
How XRP’s Two Lows Near $1 Laid the Groundwork for the Summer Surge
XRP’s price movements are consistent with this pattern. Following the June 26 low, the cryptocurrency traded between $1 and roughly $1.18 during July, eventually hitting its lowest daily close of the year at around $1.03 on August 6. Buyers defended the $1 level on both occasions.
Following this, XRP managed to close above the $1.18 to $1.20 range that had confined its movements in July, reinforcing the double-bottom pattern. Traders often combine the depth of this pattern—approximately 18 cents—with the neckline, indicating a possible target around $1.37. XRP even surpassed this estimate, reaching $1.70 on August 22.
Can XRP Maintain the $1.20 Neckline Amid Ongoing Pullbacks?
While a confirmed double bottom generally suggests bullish sentiment, XRP has seen a retracement of about 17% since its August 22 peak of $1.70. Traders are now monitoring the $1.17 to $1.20 area—around 15% to 17% lower than the October 10 trading price—where the former neckline intersects with a 78.6% retracement of XRP’s advance from $0.50 to $3.65.
It’s not uncommon for a pullback to test a previously breached neckline, a process known as a retest. If buyers re-emerge at this support level, the double bottom remains credible. Conversely, a close below roughly $1.17 might compromise this breakout and prompt a revisit to the summer lows near $1—approximately 29% lower than the October 10 price. Additionally, an increase in forced selling due to leveraged positions could compromise any established support levels, irrespective of the pattern.
Is the XRP Double Bottom Staying Strong or Breaking Down?
Currently, the XRP double bottom pattern appears to be intact. The cryptocurrency trades approximately 18% above its $1.20 neckline and around 37% higher than its August low, indicating that the recent 5% decline is more of a normal correction instead of a breakdown. For XRP holders, a retest of the $1.17 to $1.20 zone could still signify a notable decline of nearly 15% from the October 10 price.
However, if XRP closes below about $1.17, it may likely weaken the double bottom pattern, hinting at a potential return to the $1 mark. On the flip side, if XRP climbs above $1.50—approximately 6% higher—it could continue the uptrend that started with the double bottom, targeting the September 23 peak of $1.66.
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