XRP price risks falling to $ 2 after the classic bearish chart pattern confirming
Key Takeaways:
The XRP (XRP) The price flashes warning signs as a bearish technical pattern that solves lower timeframes, in conjunction with massive long prevention and reduction of open interest.
XRP H&S pattern patterns in a 14% price collapse
The XRP price action has developed a head-and-shoulders (H&S) pattern on the four-hour chart since May 9, projection of a likely collapse.
The head-and-shoulders pattern is a bearish return pattern that can signal a change in trend. It consists of three peaks: a higher climax (head) and two lower peaks (shoulders).
This is resolved when the price breaks under the neckline (the line connecting the lows and right shoulders), confirming the pattern and suggesting a potential sale signal.
In the case of the XRP, the pattern was proven following a break and closed under the neckline at $ 2.33 during the first time of Asian trading on May 19.
If the price stays under the neckline, the XRP/USD pair can still slide to $ 2.25 (where the 200-day simple moving average sitting currently seated) and then to the target pattern of $ 2.00. This will take the total losses to 14% from the current levels.
As cointelegraph reportedA possible decline to less than $ 2.00 is currently playing while reducing bullish momentum.
For the popular egrag crypto analyst, the XRP price “should hold” the support of $ 2.30, which aligns with the H&S neckline, to prevent a breakdown on these targets.
Related: XRP price path to $ 3.40 remains intact – here’s the reason why
The analyst shared A chart showing that a fall below $ 2.30 can trigger a massive sale, with the initial target set around $ 2.15 and then less than $ 1.60.
Open XRP interest of $ 1 billion in 5 days
XRP Open interest (OI) dropped by 18% to $ 4.49 billion in the last five days. This fall on OI signals reduced the businessman’s confidence and liquidity, driving prices.
The latest drawdown in the XRP price has also triggered fluids the previous day, where long positions worth $ 12 million are forced to be closed, compared to just $ 1.4 million in shorts.
It reflects increased sales pressure as bullish entrepreneurs are forced to sell at a loss, further pushing prices lower.
Essentially, the 3% collapse of XRP in the last 24 hours was accompanied by a 70% increase in the day -to -day trade volume to $ 4.1 billion. Increasing trading volume in the midst of a price collapse can be interpreted as increasing bearish momentum or reposing crypto entrepreneurs as they await the next XRP transfer.
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
