In the past 24 hours, XRP has experienced a notable downward trend, dropping almost 5%, as per CoinMarketCap’s data. Amidst this decline, well-known market analyst Ali Martinez has observed a clear bearish pattern on the XRP price chart, indicating the potential for further decreases.
XRP Faces Bearish Breakdown As Head-And-Shoulders Pattern Emerges
XRP investors have seen the crypto market’s volatility firsthand over the past week. A sudden 30% spike to $3.00 was quickly followed by a bearish counter that sapped much of its gains. Currently trading around $2.30, XRP has entered a downtrend, showing strong selling pressure.
Ali Martinez has commented on what’s happening in the market, noting that XRP’s daily price chart is displaying a head-and-shoulders pattern, suggesting a major price plummet might be on the horizon. To provide some background, a head-and-shoulders pattern is a classic chart formation recognized as a trend reversal signal. It often manifests at the peak of an uptrend before the market takes a downward turn.
The bearish setup starts with the left shoulder—a peak in price followed by a pullback. For XRP, this is evident from its December 2024 climb to around $2.70, followed by a market correction. Then, the pattern’s head presents a higher peak, marked by the recent market top at $3.40, which was succeeded by a drop.
Completing the formation, the right shoulder has taken shape over the past week, marked by volatile price movements. With XRP’s current downtrend, traders are cautious, anticipating a potentially significant price drop.
However, the bearish outlook can only be confirmed if XRP decisively breaks below the key support level at $2.20, according to Martinez. If this happens, the cryptocurrency might plunge to as low as $1.20, marking a 50% drop from its February local highs.
To counteract this bearish forecast, XRP bulls need to muster enough buying power to surpass the $3.00 right shoulder peak—an essential move to shift momentum towards a sustained price rally.
XRP Market Overview
As of now, XRP is trading at $2.34, having experienced a 4.56% decrease in the past day. However, with weekly gains of 9.44%, the asset posts minor monthly growth of 0.34%. Despite recently slipping below its 100-day Simple Moving Average—a factor adding to the concerns about an ongoing downtrend—the CoinMarketCap data indicates that the XRP community remains optimistically bullish.
For further insights: Check out the related piece on Bitcoin’s price forecast and its head-and-shoulders pattern prediction here.
