As risk appetite wanes in the cryptocurrency market, the price of XRP is hovering near the $2 mark, a level that has long served as robust support. Technical indicators suggest that the price movements are forming within a significant pattern.
XRP Forms Head and Shoulders Pattern
Recent price actions indicate that XRP is moving within a commonly observed 'head and shoulders' formation in technical analyses. Typically, this pattern signifies the potential end of an upward trend and the onset of a downward trajectory. The structure comprises three peaks, with the center peak being the highest.
Price May Drop to $1.07
If a breakdown occurs within the formation, a significant decline in XRP's price is anticipated. Veteran market analyst Peter Brandt indicates that, in such a scenario, the price could nearly halve. Calculations based on technical analysis methods suggest that a pullback to around $1.07 is plausible.
XRP Must Surpass $3 Resistance
Analysts assert that for XRP to re-enter an upward trend, a critical threshold must be crossed. This level is identified as the $3 resistance band formed earlier in March when the price faced upward challenges. If XRP can surpass this threshold, it is believed that buyers will return to the market with renewed strength.
The current market remains cautious. Traders are closely monitoring macroeconomic developments in addition to technical formations. If XRP falls below the $2 band, serious decisions may need to be made by XRP holders.
