The XRP price is holding tight above the crucial $2.00 level during the ongoing market crash. However, Ali Martinez predicted that based on the XRP chart pattern, the crash might not be over yet.
What you'll learn 👉
A Concerning XRP Chart Pattern
Martinez spotted a head and shoulders pattern on XRP’s chart. This pattern started with a left shoulder in late December. Then came the head – a higher peak in January that reached the highest point. The right shoulder formed in February and March, with a peak lower than the head. This shows that buyers were losing strength.
The neckline sits around $2.10. This is an important support level that connects the low points between the shoulders. When Martinez shared his analysis, the XRP price was trading at $1.9938 – already below this neckline. This breakdown confirms the bearish signal.
How Low Could XRP Price Go?
Technical analysts have a way to calculate price targets after a pattern breaks. They measure the height from the head to the neckline, then subtract that amount from the neckline itself.
The neckline is at about $2.10, and the head peaked at around $3.10. This gives a height of about $1.00. When we subtract from the neckline, we get a target price between $1.10 and $1.30. Martinez chose $1.30 as his prediction.
His tweet said: “XRP is breaking out of a head-and-shoulders pattern, setting the stage for a potential move to $1.30!”
If XRP drops to $1.30 from where it is now, that would be a 57% price decline. This would be a big loss for people who own XRP.
The head and shoulders pattern is famous among traders. It usually means a price that was going up will start going down.
XRP was rising before this pattern showed up. Now that the price has dropped below the neckline, many traders think it will keep falling toward $1.30.
Traders look at this pattern to help them decide when to sell or bet against a coin. The clear drop below the neckline is a strong warning sign. If Martinez has it right, XRP might keep selling off in the coming weeks.
This doesn’t mean the price will definitely fall. Markets can surprise us, and other things can affect XRP’s price too. But this pattern is a good reason for traders to be careful about XRP right now.
Read also: Pro-Ripple Lawyer Explains Why Coinbase Just Doubled Down on XRP, and What the SEC Knew All Along
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