XRP Dips 9% in a Week: Is It Time to Buy at the 200-Day Average?
Ripple just secured four institutional deals in a single week, yet XRP still shed nearly 10% and slid back to a technical level that traders treat as a line in the sand between bull and bear territory.
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XRP (CRYPTO: XRP) fell 9% over the week leading up to October 9, 2026, returning to its 200-day average—a key indicator traders use to assess long-term trends. As of October 10, XRP is priced at $1.41, which slightly mitigates its weekly loss to 5.2%. However, it remains approximately 61% below its all-time high of $3.65.
This decline occurred during a week when Ripple, the company behind XRP, announced four institutional partnerships. Additionally, the CFTC provided preliminary regulations identifying XRP as a digital commodity. So, does XRP’s return to its 200-day average signal a buying opportunity, or the start of a downtrend?
What XRP’s 200-Day Average Tells Traders
A moving average, like the 200-day average, represents the average closing price over the past 200 days and updates daily. This approach smooths daily price fluctuations into a clearer trend line. Currently, XRP is testing its exponential 200-day moving average, which weighs recent prices more heavily and responds faster to changes.
This moving average holds significance because many traders set buy and sell orders around it. However, moving averages do not predict future price movements. A single day of heavy selling could push XRP below this critical line.
When XRP trades above its 200-day average, it is considered to be in a longer-term uptrend, while trading below it indicates a potential downtrend. In late September, XRP’s 50-day moving average crossed above the 200-day average, a pattern known as a golden cross, which traders often interpret as a bullish signal. But if XRP continues to close below the 200-day average, it could negate that optimistic signal.
Why Ripple’s Four Institutional Deals Failed to Stop XRP’s Slide
During the same week, Ripple made headlines by announcing four key institutional developments, including:
- A partnership with a South Korean securities firm.
- A custody agreement with a major custodian, allowing institutions access to XRP for their clients.
- An integration with another settlement network used by financial institutions to finalize payments.
- A partnership with a significant hedge fund manager.
Despite these announcements, XRP still fell by 9%. One reason could be that such institutional deals typically take considerable time to generate revenue. Moreover, partners can utilize Ripple’s services without actually holding XRP tokens, and Ripple did not disclose any financial details of these partnerships, leaving traders without specific figures to consider.
Additionally, leveraged trading contributed to the selling pressure. When prices decline, exchanges can forcibly close traders’ positions using borrowed funds, flooding the market with even more tokens. By October 9, forced liquidations across the crypto market totaled around $1 billion, amplifying the downturn despite Ripple’s positive news.
Why Long-Term XRP Holders Watch Drops Like This One
A price drop can offer long-term holders a better entry point than buying at higher prices. This approach assumes that Ripple’s partnerships will eventually translate into demand for XRP tokens. However, at this stage, none of the announcements have secured commitments from specific institutions to purchase XRP.
Recent buyers may also find themselves at a loss. Data from October 4 indicated that XRP fund investors had invested $1.79 billion but were holding only $1.66 billion. With XRP trading about 61% below its peak, it may look cheap on historical charts, but significant price declines could still continue.
Is XRP’s Drop to Its 200-Day Average a Dip to Buy?
As it stands, XRP is testing its 200-day average and has yet to show it can hold above it. This means that anyone considering buying now risks their investment until the situation becomes clearer. Recent institutional news does not provide solid evidence to predict XRP’s next move, and the CFTC’s recognition of XRP did not support its price either.
For XRP to appear as a genuine buying opportunity, it would need to close above the 200-day average each day throughout October. It may also need to rebound to its recent high of $1.51 from October 5 and recover from the 9% weekly loss. If XRP continues to close below this crucial line, its long-term trend could shift downward, effectively reversing the positive signal from late September.
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Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
