XRP, currently the fourth largest cryptocurrency, has made what might be deemed a “key reversal” after posting five straight days of falling. XRP bounced from the key $2 level, which is currently decisive for its price action. XRP price fell as low as $2.06 on Saturday before rebounding, signaling traders might be buying the dip.
The $2.00 level remains crucial for XRP, as a sustained drop below it could validate a bearish head and shoulders pattern recently identified by analysts. If this bearish pattern is confirmed, XRP could target the $1.07 level, marking a significant downturn.
Veteran trader Peter Brandt recently highlighted the appearance of a “textbook” head-and-shoulders pattern (H&S) on the XRP price chart. According to Brandt, a price increase above $3 could invalidate the H&S pattern.
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In this light, $1.90 remains a critical support level to watch, having been tested only three times since November 2024. Since trading above the $2 mark, XRP has not had a daily close below this level, indicating that traders may see this area as a potential buy-back target.
XRP price potential scenarios
XRP is down roughly 40%, two months after reaching a multi-year high of $3.40. Despite optimistic news such as the SEC dropping its appeal in the Ripple case, the cryptocurrency is reflecting a broader market sell-off driven by macroeconomic concerns.
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However, XRP is still 350% higher than its November 2024 low of $0.50, indicating a consolidation phase following a major surge. At the time of writing, XRP was up 3.07% in the last 24 hours to $2.16, having reached intraday highs of $2.21, but was down 10% weekly.
Going forward, bears might once again attempt to sink the XRP price below the critical support level of $2.
Bulls are expected to defend the level, as a break below $2 might complete a bearish head-and-shoulders pattern, potentially leading to a drop to $1.27 or even $1.07. Alternatively, XRP may consolidate between $2.50 and $2 for some time before making a major move. The essential level for XRP to reclaim remains $2.50, which would see it target the $3 mark once again.
