XRP Faces Bearish, Breakout Above $3 Could Change The Trend

XRP, the fourth-largest cryptocurrency by market capitalization, is forming a head and shoulders pattern on its daily price chart, signaling a potential bearish outlook for its price.

Crypto analyst Ali pointed out that XRP’s chart is currently showing a bearish head and shoulders pattern. The left shoulder and head are already formed, with the right shoulder under development.

If this pattern plays out, XRP could drop to as low as $1.29, based on the target suggested by Ali’s chart. However, if XRP manages to break above $3, it could invalidate the pattern, flipping the outlook bullish. Ali shared his analysis with the crypto community, indicating that breaking the $3 mark could lead to a shift in sentiment.

Market Sentiment: Peter Brandt’s Warning

Veteran trader Peter Brandt echoed a similar bearish outlook, stating that the appearance of the head-and-shoulders pattern could result in XRP falling to $1.07. Brandt also highlighted that a price drop below $1.90 increases the risk of a 55% correction, with $3 acting as a crucial resistance level.

ritical Support Levels

At the time of writing, XRP is trading at $2.19, down nearly 6.9% in the last 24 hours, continuing a four-day decline from the highs on March 24. The $1.90 level is key to watch, as it has acted as support in the past and may serve as a potential buy-back area for investors. A drop below this could see XRP targeting the 200-day SMA at $1.77.