- XRP holding $2 support is crucial, or a breakdown toward the $1.25 level could follow.
- The head-and-shoulders pattern suggests a bearish reversal if selling pressure intensifies.
- A drop below $1.20 may trigger a bear market, making the next weeks crucial for XRP.
XRP is at a crucial juncture as the technical outlook indicates a higher probability of a decline. Analyst Ali Martinez has said that XRP is currently in a head-and-shoulders formation on the weekly chart, a bearish pattern that warns of a trend reversal. The $2 support is a critical level, which, if breached, could lead to a deeper drop. If this level is breached, XRP bears could take the cryptocurrency to the next lower level to intensify the bearish pressure.
Head-and-Shoulders Formation
The left shoulder, head, and right shoulder are formed, which establish the structure. XRP has already touched the $2 support level and showed a bounce back to $2.34 as of press time. However, the pattern implies that if there is further selling pressure, XRP could fall to $1.25, as depicted by the downward trendline on the chart.
Another crypto analyst, More Crypto Online, has noted that $1.20 is the level that will determine the fate of the bulls. If XRP manages to sustain above this level, another high in this cycle can still be seen. Nevertheless, a price drop below $1.20 may signal a bear market, which will lead to further downward pressure and force the bears to take control of the market. The following few weeks will be very decisive for the future of XRP.
XRP’s Next Big Move
However, short-term movements may still be possible before the major movement occurs. XRP may experience volatile price swings as bulls fight for control against the bears. If buyers are able to hold $1.20 and $2, XRP may find support and start a recovery. However, if these levels are breached, more downside is expected and price targets get shifted lower.
Related: Ripple (XRP) Faces Key Levels: Will It Bounce or Break Down?
The next few weeks will determine whether XRP rebounds or continues its downward trend. If the bulls come back into the picture, the digital asset may stay in a range before another run to the upside. Nonetheless, if the sellers are more active, XRP may fail to receive adequate support. Traders will be paying close attention to the price movement of XRP in a bid to determine if it is capable of stabilizing or if it will experience a breakdown.
