Tariffs-led risk-off has payments-focused cryptocurrency XRP trading close to the support zone near $2, a crucial level for confirming a significant topping pattern and renewed downtrend.
We are referring to the head-and-shoulders pattern, comprising three peaks, with the middle being the highest. A horizontal line drawn from the base of the three peaks, the neckline, marks the key demand zone.
In XRP’s case, the $1.90-$2 range has been that demand zone since January. So, a price move below the same would trigger the H&S breakdown, confirming a bullish-to-bearish trend change.
A potential breakdown could see prices nearly halve to $1.07, according to veteran analyst and trader Peter Brandt. Chart analysts identify targets using the measure move method, which involves determining the distance from the top of the head to the neckline and subtracting that distance from the breakdown point, in this case, $2.
On the higher side, $3, or the lower high created in early March, is the level to beat for the bulls.