XRP is currently showing signs of vulnerability as its recent price action has become increasingly bearish. After attempting to regain upward momentum above $2.60 in May, this cryptocurrency has struggled to maintain this uptrend, and its price action over the past few days has brought it close to losing the $2.10 level.
Notably, the price action has led to the formation of a head and shoulders pattern on the daily candlestick chart. This could be the last straw that causes the price of XRP to eventually drop sharply below $2.
XRP Breaks the Neckline of Head and Shoulders
According to the assessment of a cryptocurrency analyst on social media platform X, XRP has currently formed a classic head and shoulders pattern, with a clearly defined symmetry between the left shoulder, head, and right shoulder. The head and shoulders pattern began to form in late April, when the price rose to $2.26 to become the left shoulder of the pattern. In early to mid-May, XRP surged above $2.60 to form the head of the pattern and what appeared at that time was a continuation of strong upward momentum.
The price increase lost momentum right after reaching its peak in May, and the price started to decline again. By June 3, XRP made another attempt to push the price higher, reaching $2.27 during the formation of the right shoulder. However, this price push was insufficient, and the subsequent price action saw sellers gradually struggle for control.
The head and shoulders pattern, often associated with trend reversals, became more concerning when XRP broke below the neckline at $2.18 and reached a low of $2.07 on July 6. Interestingly, the break below the neckline was accompanied by increased volume, which provides further confirmation for the bearish signal.
EMA Rejects XRP: What Will Happen Next?
Now XRP has broken below the neckline, the $2.18 to $2.20 range is beginning to turn into a strong resistance barrier for any recovery attempts. The daily candlestick chart shows that XRP continues to trade below both the 9-day EMA and the 50-day SMA, currently at $2.1877 and $2.2649 respectively.
Despite a modest recovery in the past 24 hours, XRP has repeatedly failed to break above the 9-day EMA since the neckline was breached, indicating persistent weakness in the short-term structure.
As long as XRP is stuck below the neckline and the EMA/SMA resistance cluster, the current structure continues to support a downward expansion. Based on the head and shoulders setup, a measured move from the neckline breakdown predicts a decline to the range of $1.85 to $1.80.
At the time of writing, XRP is once again trading at the resistance neckline at $2.18 after a 2.6% increase in the past 24 hours from $2.13. However, the strength of this recovery remains in question, as it coincides with a sharp drop of 48.14% in trading volume over the next 24 hours, which will be crucial, as price behavior around the range of $2.18 to $2.20 may determine whether XRP continues to decline and breaks below $2.
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Distanger
· 9h ago
I expect interesting movements and am closely following the further developments.
XRP Is at Risk of a Sharp Drop Below $2 as Sellers Take Control
XRP is currently showing signs of vulnerability as its recent price action has become increasingly bearish. After attempting to regain upward momentum above $2.60 in May, this cryptocurrency has struggled to maintain this uptrend, and its price action over the past few days has brought it close to losing the $2.10 level. Notably, the price action has led to the formation of a head and shoulders pattern on the daily candlestick chart. This could be the last straw that causes the price of XRP to eventually drop sharply below $2. XRP Breaks the Neckline of Head and Shoulders According to the assessment of a cryptocurrency analyst on social media platform X, XRP has currently formed a classic head and shoulders pattern, with a clearly defined symmetry between the left shoulder, head, and right shoulder. The head and shoulders pattern began to form in late April, when the price rose to $2.26 to become the left shoulder of the pattern. In early to mid-May, XRP surged above $2.60 to form the head of the pattern and what appeared at that time was a continuation of strong upward momentum. The price increase lost momentum right after reaching its peak in May, and the price started to decline again. By June 3, XRP made another attempt to push the price higher, reaching $2.27 during the formation of the right shoulder. However, this price push was insufficient, and the subsequent price action saw sellers gradually struggle for control.
The head and shoulders pattern, often associated with trend reversals, became more concerning when XRP broke below the neckline at $2.18 and reached a low of $2.07 on July 6. Interestingly, the break below the neckline was accompanied by increased volume, which provides further confirmation for the bearish signal.
EMA Rejects XRP: What Will Happen Next? Now XRP has broken below the neckline, the $2.18 to $2.20 range is beginning to turn into a strong resistance barrier for any recovery attempts. The daily candlestick chart shows that XRP continues to trade below both the 9-day EMA and the 50-day SMA, currently at $2.1877 and $2.2649 respectively. Despite a modest recovery in the past 24 hours, XRP has repeatedly failed to break above the 9-day EMA since the neckline was breached, indicating persistent weakness in the short-term structure. As long as XRP is stuck below the neckline and the EMA/SMA resistance cluster, the current structure continues to support a downward expansion. Based on the head and shoulders setup, a measured move from the neckline breakdown predicts a decline to the range of $1.85 to $1.80. At the time of writing, XRP is once again trading at the resistance neckline at $2.18 after a 2.6% increase in the past 24 hours from $2.13. However, the strength of this recovery remains in question, as it coincides with a sharp drop of 48.14% in trading volume over the next 24 hours, which will be crucial, as price behavior around the range of $2.18 to $2.20 may determine whether XRP continues to decline and breaks below $2.