Market Analysis: XRP’s Critical Support Zone
Recent developments in the cryptocurrency market, particularly influenced by tariff concerns, have led to a risk-off sentiment that places the payments-focused cryptocurrency XRP near a significant support zone around $2. This level is pivotal for confirming a potential head-and-shoulders pattern, which might indicate a renewed downtrend.
The head-and-shoulders formation consists of three distinct peaks, with the central peak being the tallest. A horizontal line, known as the neckline, can be drawn from the base of these three peaks, serving as a key demand zone. For XRP, this demand zone has been firmly established in the $1.90-$2 range since January. A price movement that dips below this zone could trigger a head-and-shoulders breakdown, signaling a shift from a bullish to a bearish trend.
Should a breakdown occur, veteran analyst and trader Peter Brandt suggests that prices could potentially decrease by nearly half, targeting around $1.07. Chart analysts often employ the measure move method to set targets, which involves calculating the distance from the top of the head to the neckline and subtracting that distance from the breakdown point—in this instance, $2.
Looking towards the upside, the $3 mark, which represents the lower high formed in early March, stands as a crucial barrier that bulls must overcome to regain momentum.
