XRP Moves Towards Level That Could Initiate Downtrend, Setting Support at $1.07: Technical Analysis
A breakout of the pattern's upper boundary could potentially halve the price to $1.07.
Author: Omkar Godbole Updated: April 3, 2025 15:52 UTC Published: April 3, 2025 05:34 UTC
Key points:
- XRP is near a major support level, confirming the formation of a head and shoulders pattern.
- A breakout could signal a reversal of the bullish trend to a bearish one, which could lead to a price decline to $1.07.
- Bulls need to push XRP above $3 to break the lower high set in early March.
Tariff risk mitigation has left payments-focused cryptocurrency XRP trading close to support around $2, a critical level for confirming a significant reversal pattern and resuming the downtrend.
We are talking about a head and shoulders pattern, which consists of three peaks, with the middle peak being the highest. A horizontal line drawn from the base of the three peaks marks the key demand zone.
In the case of XRP, the $1.90-$2 range has been a demand zone since January. Therefore, a price drop below this level would trigger a breakout of the H&S, confirming a trend change from bullish to bearish.
A potential breakout could see prices nearly halve to $1.07, according to veteran analyst and trader Peter Brandt. Chart analysts set targets using a move-measuring method that involves taking the distance from the top of the head to the neckline and subtracting that distance from the breakout point, in this case $2.
In contrast, the $3 level, or the lower high reached in early March, is the mark that bulls need to break through.
