Price action in the past 24 hours has seen the XRP price fall towards $2, with the risk of breaking below. This risk comes with XRP experiencing a slow bleed over the past few days that has caused the price to compress into an interesting technical pattern on the 4-hour chart. This decline phase comes after a sharp rally in late April, but buyers are now losing strength.
According to an interesting analysis by a crypto analyst on the TradingView platform, XRP could now face a technical confirmation that could extend a crash to $1.7757.
Head And Shoulders Pattern Signals Price Crash
Technical analyst KlejdiCuni outlined a well-defined head and shoulders pattern on the 4-hour chart of XRP/USDT. This formation is viewed by analysts as a bearish signal, particularly when it appears after a strong uptrend, as is the case here. The left shoulder formed during XRP’s brief rally to $2.19 in late April, followed by a higher peak around $2.35 that created the head, and more recently, a lower high forming the right shoulder.
At the time of the analysis by crypto analyst KlejdiCuni, the neckline of this pattern was along the $2.13 to $2.14 zone, and is the important support level that determines whether the pattern confirms or fails. A decisive breakdown below this neckline, particularly with increasing volume, would strongly suggest a continued crash to the downside.
Downside Targets With $1.7757 As The Full Bearish Target
If XRP confirms the head and shoulders breakdown by closing decisively below the neckline support near $2.13, which it has, the next move is a series of bearish targets. According to KlejdiCuni’s analysis, the first key level to watch is $2.0417. This zone corresponds to a horizontal support cluster formed between 16th and 22nd April, where buyers stepped in.
The next major target is at $1.9323, which aligns with the swing low from April 10 and could attract some short-term buying activity. However, if the bearish momentum persists and XRP fails to find significant demand around this zone, the final downside target is at $1.7757. This level represents the full projected move derived from the height of the head up until the base of the little uptrend in April.
At the time of writing, XRP is trading at $2.09, down by 4% and 8.31% in the past 24 hours and seven days, respectively. This puts the crypto currently close to the first key level of $2.0417.
The next major target is at $1.9323, which aligns with the swing low from April 10 and is just below the $2 psychological level. This level could attract some short-term buying activity and prevent a further crash. However, if the bearish momentum persists and XRP fails to find significant demand around this zone, the final downside target comes into focus at $1.7757. This price level represents the full projected move from the peak of head formation. It also coincides with the base of the rally that led to the uptrend in April.
Featured image from Getty Images, chart from Tradingview.com
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