XRP ($2.19) has been struggling recently, experiencing consistently declining prices.
Currently, XRP is in a “freefall” phase, according to analyst Steph. He recently shared a crucial update on X, warning investors about a potentially dangerous pattern forming in the price action. The pattern in question is a Head and Shoulders formation, a known bearish signal.
Steph emphasized that the pattern was not well-formed in his previous update. However, the current market conditions have led to a clearer setup, with the left shoulder, head, and right shoulder becoming more apparent.
At the time of his analysis, the price of XRP was nearing a critical level, with the $2 mark under threat.
Support Level XRP Must Maintain to Remain Bullish
At the moment, XRP is trading at the $2 level, which serves as a support and neckline for this potential Head and Shoulders breakdown. According to Steph, this level is key in determining whether the pattern will play out and lead to further downside movement.
Steph noted that if XRP loses the $2 support level, it could signal a further decline. However, he also pointed out that, before taking a definitive stance, a daily—and ideally a weekly—candle close below the $2 mark is necessary to confirm the bearish outlook.
Notably, XRP touched $1.92 today before swiftly rebounding to $2.14 at press time, avoiding a close below $2. Still, the danger is not over yet.
Potential Price Dip to $1.20 and $1.17
Should the breakdown confirm with a close below $2, Steph provided a technical price target for XRP to watch next. Specifically, he forecasts a drop to the range of $1.20 to $1.17. This range is based on the length of the head in the Head and Shoulders pattern, projected down from the neckline.
Steph also pointed out that significant volume was traded in this price area back in November 2024. This suggests that a retest of this level could occur if the bearish scenario unfolds.
However, he cautioned that this outcome would only be valid if the market sees a confirmed breakdown below $2, with support from trading volume.
XRP head and sholders pattern by StephXRP head and shoulders pattern by Steph
Notably, analyst Ali Martinez has also warned that XRP could crash to $1, citing the head-and-shoulders pattern.
Martinez also noted that XRP recently formed the right shoulder of this pattern, warning of a major downfall with a sustained dip below $2. Essentially, although bullish sentiment about XRP persists, warnings of bearish levels are growing, even among optimistic analysts.
