XRP’s price action has taken a bearish turn as the cryptocurrency breaks below a critical $2.00 support level, confirming a head and shoulders pattern that could signal further downside ahead. Recent analysis of XRP’s support levels warned of this potential breakdown, which is now playing out in dramatic fashion.
Technical Analysis Shows Bearish Pattern Confirmation
Crypto analyst Josh Olszewicz has identified a clear head and shoulders pattern on XRP’s daily chart, with the formation showing:
- Left shoulder: $2.90 (December 2024)
- Head: $3.41 (peak)
- Right shoulder: $3.00
- Neckline: Below $2.00 (now broken)
Price Targets and Support Levels
Multiple analysts have weighed in with potential price targets:
- Immediate support: $1.80
- Fibonacci extension levels: $1.42 (1.618) and $1.16 (2.0)
- Worst-case scenario: $0.60 (complete retracement)
Contrasting Perspectives
While the overall sentiment appears bearish, some analysts maintain hope for a recovery. CrediBULL Crypto suggests the current move below $1.80 could be a ‘deviation’ rather than a true breakdown, potentially setting up for a stronger bounce.
FAQ
What is a head and shoulders pattern?
A head and shoulders pattern is a technical chart formation consisting of three peaks, with the middle peak (head) being higher than the two outer peaks (shoulders). It’s considered a bearish reversal pattern when confirmed.
What are the key support levels to watch?
Current key support levels include $1.80, $1.42, and $1.16, with $0.60 representing a potential bottom target according to some analysts.
Could this be a false breakdown?
Some analysts, including CrediBULL Crypto, suggest this could be a deviation below support rather than a true breakdown, though traders should maintain strict risk management regardless.
At press time, XRP trades at $1.76, having declined significantly from recent highs above $3.00.