XRP has been caught in the crosshairs of a broader market downturn, primarily triggered by Bitcoin’s (BTC) struggles around the $80,000 mark. As bearish sentiment gripped the crypto landscape, XRP faced a sharp decline, briefly slipping below the crucial $2 level before reclaiming it amid a mild recovery.
XRP at a Critical Juncture
Earlier today, XRP once again dipped below $2, touching a low of $1.89 before rebounding to reclaim the psychological support level. Crypto analyst Ali Martinez has raised concerns over XRP’s price structure, highlighting a bearish head and shoulders pattern forming on the 12-hour chart.
For those unfamiliar with technical analysis, a head and shoulders pattern is a bearish formation that signals a potential trend reversal. It consists of three peaks: two lower shoulders and a higher middle peak (head). The pattern is confirmed when the price breaks below the neckline, indicating a stronger downward move.
Martinez’s analysis indicates that XRP formed its left shoulder at $2.9 in December 2024, followed by a peak at $3.4 in January 2025 (head). The right shoulder then developed after a retracement from $3.4 to $3 earlier this month. With XRP now testing the neckline at $2, Martinez warns that a decisive break below this level could trigger a deeper decline.
The Battle for $2
For the bearish scenario to materialize, XRP must not only fall below $2 but also confirm this break with a strong candlestick close. Should this happen, Martinez foresees a potential drop toward the $1.27 region.
Supporting this view, order book expert Dom also emphasized that XRP’s inability to reclaim the $2.2 zone has left it vulnerable. He warns that failure to hold $2 could lead to steeper losses, with $1.6 as the next potential target.
Currently, XRP is trading at $2.1, marking a 4.28% gain for the day but still down 1.96% for March. Analysts agree that Bitcoin’s recovery could provide a lifeline, but for now, XRP remains at a critical crossroads, with its fate hinging on the $2 level.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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