- TD Sequential signals bearish momentum, raising concerns about XRP’s price stability.
- A head and shoulders pattern suggests a potential drop to $1.50 if support breaks.
- Holding above $2 could prevent further losses and restore bullish confidence.
Ripple’s XRP is showing signs of trouble as the TD Sequential flashes a bearish signal. A red candle on the weekly chart suggests further downside. Traders now focus on the $2.20 support level, which could determine the next move. A breakdown from this zone may trigger a deeper correction. Adding to the concern, a head and shoulders pattern has appeared, hinting at a potential trend reversal. The coming days could be critical for XRP’s price action.
Head and Shoulders Pattern Signals Potential Drop
A head and shoulders pattern has formed, creating a concerning setup for XRP. Three peaks stand on the chart, with the middle one towering above the others. This pattern often signals a shift from bullish to bearish momentum. The neckline, acting as support, sits at $2. A break below this level could lead to a 24% correction, bringing XRP down to $1.50.
Drops like this rarely happen instantly. Markets often retest key levels before making decisive moves. A bounce from the neckline could offer hope for recovery. However, failure to hold this support may strengthen bearish momentum. A weekly close below $2 could confirm a longer downtrend, leading to further losses.
Can XRP Bulls Prevent a Deeper Decline?
Not all scenarios point to immediate losses. XRP Bulls still have a chance to defend the neckline and push prices higher. If buyers step in and keep XRP above $2, the trend could stabilize. Holding this level might prevent a major drop and renew investor confidence.
However, risks remain. A move below $1.50 would erase months of gains and fuel panic selling. XRP has surged over 500% in recent months, leaving plenty of room for a pullback. Bulls must act quickly to protect key levels and keep the bullish trend alive.
