XRP price bulls watch out! The popular Head and Shoulder pattern is statistically among the most accurate trend indicators. Ripple blockchain's native token XRP could make a full bearish price swing against Bitcoin (BTC), as per a classic technical indicator.
Dubbed as Head and Shoulders (H&S), the pattern develops when an asset forms three peaks atop a common baseline. The outside peaks, known as Shoulders, are close in height, while the middle one, called the Head, is the highest.
The H&S pattern is completed when the asset breaks below its baselines support, with high volumes, confirming a negative breakout. The so-called neckline also serves as the most common entry point for bearish traders as they target deeper downside levels. Though not every time, an H&S pattern's profit target comes to be equal to the distance between the pattern's high point and its neckline.
Peter Brandt, the CEO of Factor LLC, a global trading firm he established in 1980, sees the XRP/BTC instrument painting an H&S pattern. In a tweet published early Friday, Brandt raised speculation that the bearish indicator might prompt the Ripple token to turn into "a tidal wave" against Bitcoin. The veteran trader added:
"Completion of the [H&S pattern] would set [XRP/BTC] target at all-time-lows."
The total distance between the H&S pattern's top and its baselines comes out to be around 1,794 satoshis. Meanwhile, the neckline support coincides with 2,120 satoshis. Therefore, the profit target in XRP/BTC's case is (2,120-1,794), i.e., 326 satoshis.
But as XRP/BTC approaches its record low levels, the pair would still need to pass through a series of strong support levels. The XRP/BTC exchange rate bounced off its 200-day simple moving average (200-day SMA; the saffron wave) support at 1,696 satoshis. Should the pair sustain above the wave, the likelihood of retesting the H&S neckline around 2,120 satoshis is high. Meanwhile, a close above 2,120 satoshis would invalidate the H&S structure.
On the other hand, breaking below 200-day SMA exposes XRP/BTC to the next line of support near 1,555 satoshis. The level was instrumental in pushing the pair up by more than 170% in November 2020. Nonetheless, its Volume Profile shows a weaker trading activity in recent history, raising possibilities that it won't be able to handle strong selling volumes as the H&S breakout accelerates.
The last line of defense, as per the Volume Profile indicator, sits at 847 satoshis, more than twice above the H&S profit target of 326 satoshis.
Against the US dollar, XRP continued trending lower in its months-old descending channel pattern, while promising short-term upside opportunities. The XRP/USD rebounded by up to 44.53% after testing the Channel's support trendline on June 22. The pair's move uphill had it test $0.69 as its interim resistance as bulls targeted an extended push towards $0.78.
The $0.69-level has served as the resistance between November 2020 and April 2021. Meanwhile, the $0.78-level capped XRP/USD from extending its downside bias throughout May 2021.
|#||Crypto||Prediction||Accuracy||CVIX||Price||24h||7d||Market Cap||7d price change|
|1||BTC||Bitcoin predictions||69.6%||54||$28 035.57||1.66%||4.95%||$541 839 096 808|
|2||ETH||Ethereum predictions||78%||39||$1 775.07||1.02%||1.84%||$217 221 883 335|
|3||USDT||Tether predictions||95.6%||1||$1.000976||-0.19%||-0.14%||$78 562 701 230|
|4||BNB||Binance Coin predictions||76.4%||51||$323.46||-0.40%||-2.95%||$51 071 426 316|
|5||USDC||USD Coin predictions||94.4%||2||$0.999601||0.01%||-0.01%||$34 392 573 197|
|6||XRP||XRP predictions||85.2%||21||$0.428645||-4.23%||14.37%||$21 839 846 254|
|7||HEX||HEX predictions||58.8%||82||$0.096384||-19.91%||10.66%||$16 714 004 185|
|8||ADA||Cardano predictions||76%||43||$0.362541||-2.33%||6.05%||$12 588 135 268|
|9||STETH||Lido stETH predictions||96%||1||$2 941.39||-0.40%||-3.32%||$10 258 752 564|
|10||DOGE||Dogecoin predictions||74%||51||$0.075059||-2.95%||0.21%||$9 958 117 300|
|11||MATIC||Polygon predictions||76.4%||48||$1.11||-1.01%||-7.45%||$9 708 811 453|
|12||SOL||Solana predictions||74.4%||52||$21.67||-0.29%||6.07%||$8 316 110 713|
|13||BUSD||Binance USD predictions||92%||1||$0.996930||-0.27%||-0.39%||$8 039 266 757|
|14||DOT||Polkadot predictions||71.6%||49||$6.16||-0.32%||-4.71%||$7 244 608 987|
|15||LTC||Litecoin predictions||68%||58||$91.86||0.28%||9.72%||$6 664 265 906|
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