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According to cryptocurrency analyst Ali Martinez, the XRP cryptocurrency could be forming a "head-and-shoulders pattern."
If the pattern ends up playing out, the Ripple-linked cryptocurrency could plunge all the way to the $1.1 level.
On Feb. 28, XRP slipped to as low as $1.95 amid a brutal market sell-off. The token has now rallied by more than 15% from that low, recovering in tandem with other major cryptocurrencies.
However, the token is still down as much as 33% from its all-time high of $3.4 that was recorded Jan. 16.
XRP has now possibly formed the right shoulder of the popular bearish pattern after the price remained below the central peak.
Godfrey BenjaminIt is worth noting that the formation of the right shoulder is typically accompanied by significantly lower trading volume, which is the case for XRP.
The Ripple-linked cryptocurrency logged only $2.7 billion worth of trading volume on Saturday.
Bullish catalysts
While the pattern could be viewed as a potentially bearish sign for the XRP token, there are some potential bullish catalysts that could throw a wrench in the works for XRP bears.
According to Polymarket bettos, XRP ETF approval odds currently stand at 75% after slipping to 72% a few days ago.
Gamza KhanzadaevAs reported by U.Today, the SEC has already acknowledged several XRP ETFs.
There is also a 12% chance of the U.S. creating a national reserve with the XRP token, according to Polymarket.
Last month, Ryan Rasmussen, head of research at Bitwise Asset Management, revealed that members of a multi-billion wealth management team also owned XRP in their crypto portfolios. Rasmussen explained that XRP had "strong" brand recognition and top-notch marketing.
Dan Burgin
Vladislav Sopov