Charting Guy, a well-known crypto analyst on X, recently shared his outlook on XRP, highlighting the potential for a head-and-shoulders pattern forming on the daily chart, which could push XRP’s price down to around $1.15.
The Head-and-Shoulder Pattern
According to Charting Guy's analysis, XRP began forming this pattern in December when the price crossed $2 for the first time since 2018. This was driven by news of the SEC dropping its appeal against Ripple. The head of the pattern formed as XRP reached a multi-year high of $3.39.
Key Support Levels and XRP's Future
Charting Guy also shared charts highlighting support levels for XRP. One chart shows the Ichimoku Cloud with a baseline at $1.94, aligning with the initial support zone. Another chart uses the Supertrend indicator, identifying support at $1.73. The final chart shows support levels by the EMA Ribbon, ranging from $1.46 to $1.93, indicating sustained bullish trend while XRP stays above these levels.
Conclusion
Despite the potential decline, Charting Guy views this as possibly just a golden pocket backtest, with the overall bullish trend remaining intact. He notes that many altcoins might drop to fill previous lows, which could conclude the bearish phase and lead to another rally.
Charting Guy suggests that the current market situation for XRP might present an opportunity to test support levels without impacting the overall upward trend. His insights provide important considerations for those closely following XRP's market movements.
