XRP Price Trends: An In-Depth Technical Analysis
Explore trusted editorial insights reviewed by renowned industry professionals and experienced editors. This article provides an analysis of recent XRP price movements and potential future trends.
XRP Faces Potential Price Decline Below $2
Over the last 24 hours, XRP has been under pressure, edging closer to the $2 mark and at risk of dropping further. This downward trend follows a period of gradual decline, creating an intriguing technical setup on the 4-hour chart. This current phase of depreciation comes in the wake of a significant rally in late April, but the momentum among buyers seems to be waning.
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According to an insightful analysis by a cryptocurrency expert on TradingView, XRP may soon encounter a technical confirmation that could exacerbate its decline to $1.7757.
A Bearish Head and Shoulders Pattern Emerges
Technical analyst KlejdiCuni has identified a distinct head and shoulders pattern on the XRP/USDT 4-hour chart. This pattern is typically seen as a bearish indicator, especially when it follows a robust upward trend, as observed in this scenario. The pattern began with the left shoulder forming during XRP’s brief surge to $2.19 in late April, followed by a higher peak at $2.35, which formed the head. Recently, a lower high formed the right shoulder.
At the time of KlejdiCuni’s analysis, the neckline of this pattern was positioned between $2.13 and $2.14, representing a crucial support zone that could determine whether the pattern confirms a further decline. A definitive break below this neckline, particularly with rising volume, would strongly indicate a continued downward trend.
Bearish Targets: Aiming for $1.7757
Should XRP confirm the head and shoulders breakdown by falling decisively below the neckline support near $2.13, the next move would be towards a series of bearish targets. According to KlejdiCuni’s insights, the initial critical level to monitor is $2.0417. This area corresponds to a horizontal support band formed between April 16 and April 22, where buying activity was previously observed.
The subsequent major target lies at $1.9323, aligning with the swing low from April 10, which might attract short-term buying interest. However, if the bearish trend persists and XRP fails to garner significant demand near this level, the ultimate downside target is $1.7757. This figure represents the full projected decline from the height of the head to the base of the prior short uptrend in April.
Currently, XRP is trading at $2.09, reflecting a decline of 4% over the last 24 hours and 8.31% over the past week. This places the cryptocurrency perilously close to the initial key level of $2.0417. The next significant target is $1.9323, just beneath the psychological $2 level, potentially attracting some buying activity to prevent further decline. Nonetheless, if bearish momentum continues, XRP could target the full downside projection of $1.7757, coinciding with the base of the April rally.
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