XRP’s Recent Price Struggles
XRP is currently showing signs of weakness as its recent price movements lean increasingly bearish. After an attempt to regain significant momentum above $2.60 in May, the cryptocurrency has struggled to maintain that momentum, with recent action bringing it closer to a crucial price level of $2.10.
Notably, the price charts have formed head and shoulder patterns. This could potentially signal a drop in XRP’s value below $2.
XRP’s Head and Shoulders Breakdown
According to cryptocurrency analysts on social media, XRP has formed classic head and shoulder formations, displaying clear symmetry between the left shoulder, head, and right shoulder. This pattern began taking shape in late April when the price rose to $2.26, marking the left shoulder. Then, in early to mid-May, XRP surged past $2.60, defining the head of the formation and showcasing a moment of strong bullish momentum.
However, that momentum quickly dissipated. By June 3, XRP attempted to climb higher again, reaching $2.27, forming the right shoulder in the process. Unfortunately, this push wasn’t sufficient, and subsequent price actions have gradually shifted control to sellers.
The head and shoulder patterns, often connected to trend reversals, raise concerns, especially as XRP dropped below the neckline and the $2.18 level, reaching a low of $2.07 on July 6.
What Lies Ahead for XRP?
With XRP having broken below the neckline, the $2.18-$2.20 area is quickly transforming into a solid resistance barrier for potential recovery efforts. Daily candlestick charts illustrate that XRP continues to trade below its 9-day EMA and 50-day SMA, which sit at $2.1877 and $2.2649, respectively.
Although there has been a slight recovery in the last 24 hours, XRP has struggled to consistently break the EMA for nine consecutive days since the neckline failure. This points to an ongoing lack of strength in the short-term structure.
As long as XRP remains beneath the neckline and the clusters of EMA/SMA resistance, the overall trend seems to favor further declines. Based on the head and shoulders setup, the anticipated move after the neckline failure suggests a drop to the range of $1.85 to $1.80.
As of now, XRP is trading at $2.18 after a 2.6% increase from $2.13 in the past 24 hours. However, the strength of this bounce feels questionable given a sharp 48.14% drop in trading volume. Movements around the $2.18 to $2.20 area will be crucial, as XRP might resume its downward trend, which could determine if it falls below $2. The next 24 hours will be significant.
