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XRP, the fourth largest cryptocurrency by market capitalization, is shaping up with a head and shoulders pattern on its daily price chart, suggesting a bearish outlook for its price.
According to Ali, a crypto analyst, while XRP is creating a bearish head and shoulders pattern, a potential breakout above $3 might change its market outlook.
Ali wrote in a recent tweet, "If XRP can break above $3, it would invalidate the current head-and-shoulders pattern, potentially flipping the outlook bullish."
Ali shared alongside his tweet an XRP/USDT daily chart pattern depicting the head and shoulders pattern, with the head and left shoulders already formed. The right shoulder is already being formed, with a validation leading to a drop in XRP as low as $1.29, per the target on Ali's chart.
Godfrey BenjaminThis week, veteran trader Peter Brandt expressed a similar sentiment toward the XRP price. In an X post, Brandt highlighted the appearance of a "textbook" head-and-shoulders pattern (H&S) on the XRP price chart, which could see the XRP price drop as low as $1.07.
According to Brandt, a price increase above $3 could invalidate the H&S pattern. However, a decline below $1.90 raises the risk of a 55% correction.
What's next?
At the time of writing, XRP was down nearly 7% in the last 24 hours to $2.22, extending its loss from highs over $2.50 on March 24 for the fourth day in a row.
Gamza KhanzadaevOn the downside, $1.90 remains a critical support level to monitor. The $1.90 threshold has been tested only three times since November 2024. Since trading above the $2 mark, XRP has not had a daily close below the threshold, indicating that investors may see this area as a potential buy-back.
The essential level for XRP to reclaim remains $2.50, which has served as critical support and resistance during the last four months of market activity.
One possibility is that XRP might consolidate between $2.50 and $2 for some time before making a major move. A major decline from current levels would see XRP target the daily SMA 200 at $1.77. The daily RSI has plunged below the mid-50 level, indicating a minor advantage for the bears.
Vladislav Sopov
Dan Burgin