The price of XRP, the third-largest cryptocurrency by market capitalization, shows signs of a potential downturn. Analysts have identified a bearish head and shoulders pattern on the price chart, which could significantly drop if support levels fail to hold.
According to market experts, the head and shoulders formation is characterized by three peaks, with the middle peak being the highest. The “neckline” of this pattern serves as a critical support level, and a breakdown below this threshold often signals a sharp decline.
XRP’s neckline has been established at $2, and if breached, the cryptocurrency may see a correction of up to 24%, potentially driving its price down to $1.50.
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Technical Analysis Suggests Possible Retest Before a Further Drop
Should XRP break below the neckline, it is expected first to retest the $2 level. If buyers step in at this stage, stabilization or even a reversal is possible. However, if the retest fails and sellers maintain control, the decline toward $1.50 becomes a more likely scenario.
A drop to $1.50 would mark a significant correction in XRP’s price, reflecting bearish sentiment in the market. Traders are closely watching whether the neckline can hold as support. If the price exceeds this key level, bullish momentum could return, potentially invalidating the head and shoulders pattern.
Source: Tradingview
Market conditions will be crucial in determining the direction of XRP’s price movement. Broader cryptocurrency trends, investor sentiment, and external factors such as regulatory developments may influence the outcome. Despite the bearish outlook, XRP supporters remain hopeful that strong buying interest will prevent further losses.
At the time of writing, XRP continues to trade near its neckline level, making the subsequent few trading sessions critical for its short-term trend. The market will closely monitor whether buyers can defend the $2 support level or if a breakdown leads to the anticipated price drop toward $1.50.
Conclusion
XRP is pivotal as it hovers near a key support level. A confirmed breakdown could trigger a sharp decline, while sustained support at $2 may allow recovery. Investors and traders are advised to exercise caution and closely observe price action in the coming days.
Also Read: Here is Why Ripple (XRP) is Crashing Today
