XRP Bulls will have to defend support near $ 2 after the biggest price collapse from November 2022
Prices for the XRP, the payment cryptocurrency-focused cryptocurrency used by Ripple to facilitate cross-border transactions, dropped by more than 27% on the week that ended March 9, marked the largest weekly percentage decline since November 2022, according to the tradingview resource and CoinDesk data.
The sell-off brought attention to $ 1.95, basic support, which, if violated, could lead to deeper losses.
The level served as a demand zone while forming a head-and-shoulders (H&S) topping pattern, which has been developing since December. The H&S pattern consists of three peaks, the middle is the highest and a horizontal demand zone, called the neckline, identified by a trendline that connects to the base of the three peaks.
A break under the neckline indicates weakness in demand and a change of bullish-to-bearish market in the market, which often results in deeper losses equal to the gap between the neckline and the central peak.
Therefore, the Bulls, will have to defend the support near $ 2, which failed to motivate H&S, opening doors for a slide to 60 cents, the level to act as hard resistance last year.
