XRP Faces Bearish, Breakout Above $3 Could Change The Trend

XRP, the fourth-largest cryptocurrency by market capitalization, is forming a head and shoulders pattern on its daily price chart, signaling a potential bearish

The fourth-largest cryptocurrency, XRP, is showing signs of a potential bearish outlook as it forms a head and shoulders pattern on its daily price chart.

Crypto analyst Ali pointed out that XRP’s chart is currently showing a bearish head and shoulders pattern. The left shoulder and head are already formed, with the right shoulder being developed.

If this pattern plays out, XRP could drop to as low as $1.29, according to the target on the chart shared by Ali. However, if XRP manages to break above $3, it could invalidate the pattern, flipping the outlook bullish.

“Breaking $3 flips the whole outlook bullish and invalidates the H&S pattern,” said Ali as he shared his analysis with the crypto community.

Veteran trader Peter Brandt also shared a similar bearish outlook, stating that the appearance of the head-and-shoulders pattern could result in XRP falling to $1.07.

Brandt also highlighted that a price drop below $1.90 increases the risk of a 55% correction, with $3 acting as a crucial resistance level.

At the time of writing, XRP is trading at $2.19, down nearly 6.9% in the last 24 hours. It has decreased from the highs of March 24, hitting a low of $1.90.

This level is something that investors may want to keep in mind, as it acted as support in the past and could be a potential buy-back area for investors. A drop below this could see XRP targeting the 200-day SMA at $1.77.