Recent fluctuations in XRP’s price have led to a fresh prediction from a cryptocurrency analyst. The analyst has hinted at the formation of a possible Head and Shoulders pattern in the XRP price chart. This technical pattern, if confirmed, could instigate a substantial price correction for XRP, a situation the analyst refers to as the ‘worst case scenario’.
Known as the ‘Charting Guy’, this anonymous cryptocurrency analyst on X (previously Twitter) has identified a potential Head and Shoulder pattern on the XRP chart. He has offered a deep dive into the potential impacts of this technical pattern, suggesting a possible crash in XRP’s price.
The Head and Shoulder pattern is a well-recognized bearish reversal signal. Its emergence in XRP’s price chart could indicate a shift from a bullish trend to a bearish one. The pattern typically comprises three peaks: the Left Shoulder, Head, and Right Shoulder. However, in XRP’s case, the Charting Guy observes two right shoulders and one head, a deviation that has led him to question the pattern’s validity.
Should the Head and Shoulder pattern materialize, it could trigger a major decline in XRP’s price, possibly plunging it to a low of $1.15. This dip aligns with a significant Fibonacci Golden Pocket retracement zone between 0.618 and 0.786.
While predicting this price crash as a ‘worst-case scenario’ for XRP, the analyst remains optimistic about XRP’s overall bullish market structure. He suggests that a decrease to $1.15 could serve as a healthy pullback in an overall bullish trend. Furthermore, he noted that XRP’s price has been maintaining the $2 mark on daily closes, indicating strong price action above support levels. This suggests a potential resumption of an upward trend, possibly leading to higher highs and lows for XRP.
Several critical price levels emerge from the Charting Guy’s analysis of XRP’s potential Head and Shoulder pattern. XRP has consistently closed daily candles above $2, this level is deemed as short-term support. XRP has also been wicking during recent pullbacks within a key range between $1.7 and $1.9. The analyst will closely monitor this region for any potential price rebound.
The Golden Pocket retracement zone, the ‘worst-case scenario’ for XRP price, lies between $1.15 and $1.30. In case of a more profound price correction, lower support levels have been marked from $1.19 to $0.91. For resistance levels, $2.27 is identified as a key price point with an upper resistance range identified between $3.14 and $3.32 where XRP could rally if bullish momentum resumes.
