The current situation in the XRP market shows the formation of a well-known pattern, which could lead to a significant drop in the cryptocurrency's value.
Head and Shoulders Pattern on XRP Chart
The third largest cryptocurrency asset, XRP, is exhibiting a head and shoulders pattern. This pattern is characterized by three waves of ascending and descending movements, with the middle rally and correction being significantly higher. As a result, the price chart resembles three hills with a 'neckline' serving as an important support level.
Potential Scenarios
If the neckline is breached, a decline of about 24% from the neckline level is expected, which is at $2 for XRP. The worst-case scenario is a price drop to $1.50. Before this occurs, the market might retest the $2 mark, and if there is no bullish reaction, $1.50 becomes an almost inevitable target.
Investor Positions and Forecasts
If XRP finds support at the neckline and the week closes at this level, investors may hope for further growth. However, given XRP's 500% increase in recent months, further decline is also likely, which could significantly lessen recovery potential.
The XRP market is poised for potential changes. Investors should act cautiously given the current chart situation.
