The third biggest cryptocurrency, XRP, found itself on edge once again. A closer look at the daily chart of XRP/USDT reveals that the digital asset has formed a classic head-and-shoulders pattern. Again.
XRP had been stuck around the $2 mark for a while, testing it a bunch of times without any real change. For a while, the altcoin looked strong, bouncing around the support level. But that support eventually gave way. There was a sharp drop after that, which broke through the neckline and finished off the head-and-shoulders formation.
Arman ShirinyanAfter the breakdown, the market saw a classic pullback - a short return to the neckline, which is now acting as resistance. The retest did not go through, and XRP is back to trending lower, closing at around $2.076. The rejection confirms the bearish setup and signals that the downside momentum may be building.
Looking at the move from the head to the neckline, it looks like the potential downside target is now somewhere between $1.30 and $1.40. While price targets based on chart patterns are not set in stone, the structure stays the same, and if the neckline is not reclaimed, the outlook will remain under pressure.
Alex DovbnyaUnless the XRP price can bounce back and stay above $2 with high trading volume, it looks like the bears are in the lead. The head-and-shoulders pattern has popped up again at a key moment, and the market's got its eye on it to see if history repeats itself.
Vladislav Sopov
Dan Burgin