XRP's price is showing signs of a potential crash to $2, occurring as it forms a bearish head and shoulders pattern on the one-day chart. If this pattern plays out, over $38 million in long positions could be liquidated if XRP falls below $2, which would add to the sell-side pressure.
As of today, XRP is trading at $2.12 with trading volumes up by 14% according to CoinMarketCap data. The ongoing decline aligns with a broader negative sentiment in the cryptocurrency market. The head and shoulders pattern typically signals diminishing bullish momentum and increasing seller activity in the market.
The calculated target for the head and shoulders pattern is about $1.98, indicating a 15% decline may be on the horizon. Technical indicators back this bearish outlook, with the RSI on a decline at 37 and the MACD also signaling a weak market structure, suggesting traders are cautious about buying during this downtrend.
The recent price drop could be exacerbated if XRP fails to reclaim resistance above $2.29, potentially leading to further liquidation of long positions. Conversely, if the market shifts towards bullish behavior, particularly with influences like speculative trades, XRP could recover above $2.29, which would invalidate the bearish outlook.
Should XRP dip below $2, the liquidation of over $38 million in long positions poses significant risk. The liquidation heatmap indicates that these long positions may face closure if the price begins to fall. Meanwhile, a notable number of short positions also risk closure at $2.23, suggesting significant volatility ahead for XRP's price.
In light of these developments, XRP's price is under considerable bearish pressure. The progression of the head and shoulders pattern reinforces the likelihood of a decline below $2, which would trigger a wave of long liquidations thereby intensifying the downward trend.
As of today, XRP is trading at $2.12 with trading volumes up by 14% according to CoinMarketCap data. The ongoing decline aligns with a broader negative sentiment in the cryptocurrency market. The head and shoulders pattern typically signals diminishing bullish momentum and increasing seller activity in the market.
The calculated target for the head and shoulders pattern is about $1.98, indicating a 15% decline may be on the horizon. Technical indicators back this bearish outlook, with the RSI on a decline at 37 and the MACD also signaling a weak market structure, suggesting traders are cautious about buying during this downtrend.
The recent price drop could be exacerbated if XRP fails to reclaim resistance above $2.29, potentially leading to further liquidation of long positions. Conversely, if the market shifts towards bullish behavior, particularly with influences like speculative trades, XRP could recover above $2.29, which would invalidate the bearish outlook.
Should XRP dip below $2, the liquidation of over $38 million in long positions poses significant risk. The liquidation heatmap indicates that these long positions may face closure if the price begins to fall. Meanwhile, a notable number of short positions also risk closure at $2.23, suggesting significant volatility ahead for XRP's price.
In light of these developments, XRP's price is under considerable bearish pressure. The progression of the head and shoulders pattern reinforces the likelihood of a decline below $2, which would trigger a wave of long liquidations thereby intensifying the downward trend.
