While most assets in the cryptocurrency market have returned to sideways trading mode, XRP was no exception. However, a certain technical analysis (TA) chart pattern has emerged that suggests that the stagnation period for this cryptocurrency may end in the near future.
In particular, the pseudonymous CoinsKid crypto- The expert shared a teammate’s analysis in which he observed that XRP was forming a head and shoulders formation that typically signals a bearish trend, as explained in a video published on September 28.
Bear Scenario
In this case, the analyst expects that if the XRP token breaks out of this head and shoulders pattern consisting of three tops (a higher top (head) between two lower tops (shoulders)), it will move significantly towards roughly $0.46419, as the crypto expert noted. He suggested that it could lead to a price drop.
Indeed, this chart pattern ends when the price breaks below the neckline, which represents the support level connecting the lows of the left and right shoulders. CoinsKid identified these key support and resistance levels on the XRP chart, the first at around $0.49515 and the second at $0.49864.
Finally, he concluded his words as follows:
“Keep an eye on this chart over the next few days because I think we’re getting really close. Tomorrow will be the breakout point of this chart because you can clearly see that we have reached a very, very strong resistance level for XRP.”
Ascension Scenario
On the other hand, CoinsKid also defined an ascending triangle pattern, which is the exact opposite of a bearish pattern and represents a bullish continuation chart pattern created by placing a horizontal line along the swing highs (resistance points) and a rising trend line along the swing lows (support points).
“It’s nice that XRP will start to come back, attack the 200 EMA ($0.51518) on the 4-hour time frame and then start attacking the top ($0.52515) and then all the shorts will pile up here ($0.492 to $0.506) “We have the ascending triangle, it’s just going to be stopped and liquidated and that just adds more fuel to it.”
XRP Price Analysis
Meanwhile, at the time of writing the news altcoin It is trading at $0.49979, which represents a 0.9% decline in the last 24 hours, a 0.97% loss in the previous seven days, and a 3.04% decline in the past month, as the latest charts show. It represented.
All things considered, whether the expert is right in his predictions will depend on many factors, including developments regarding the legal standoff between the United States Securities and Exchange Commission (SEC) and blockchain company Ripple.