Bitcoin
BTC$28 035.57

1.66%

Ethereum
ETH$1 775.07

1.02%

Tether
USDT$1.000976

-0.19%

Binance Coin
BNB$323.46

-0.40%

USD Coin
USDC$0.999601

0.01%

XRP
XRP$0.428645

-4.23%

XRP price will fall to new lows vs. Bitcoin if this famous chart pattern plays out


25 Jun 2021

#XRP

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.

All-time low ahead

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.

Support levels ahead

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.

XRP/USD

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.


Related

Ripple Price Prediction | How Much Will XRP Be Worth?
Ripple Price Prediction | How Much Will XRP Be Worth?
XRP price could rally by 50% based off comments from a former SEC director
XRP price could rally by 50% based off comments from a former SEC director
RoboForex adds 7 new cryptocurrencies
RoboForex adds 7 new cryptocurrencies
XRP mega whales scoop up over $700M in second-biggest accumulation spree in history
XRP mega whales scoop up over $700M in second-biggest accumulation spree in history
XRP gains 30% after Ripple gets permission to explain fair notice defense vs. SEC
XRP gains 30% after Ripple gets permission to explain fair notice defense vs. SEC
Ripple chair's pay-off plan to convince BTC miners to adopt Proof of Stake
Ripple chair's pay-off plan to convince BTC miners to adopt Proof of Stake
XRP below $1, futures open interest down by 75%
XRP below $1, futures open interest down by 75%
SEC loses a battle to win the war? Ripple dissociates from pumping XRP
SEC loses a battle to win the war? Ripple dissociates from pumping XRP
420M$ in leveraged long traders liquidated after XRP rallies to $1.96
420M$ in leveraged long traders liquidated after XRP rallies to $1.96

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 69.6% 54 $28 035.57 1.66% 4.95% $541 839 096 808 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 78% 39 $1 775.07 1.02% 1.84% $217 221 883 335 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.6% 1 $1.000976 -0.19% -0.14% $78 562 701 230 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 76.4% 51 $323.46 -0.40% -2.95% $51 071 426 316 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 94.4% 2 $0.999601 0.01% -0.01% $34 392 573 197 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 85.2% 21 $0.428645 -4.23% 14.37% $21 839 846 254 XRP 7 days price change
7 HEX (HEX) HEX HEX predictions 58.8% 82 $0.096384 -19.91% 10.66% $16 714 004 185 HEX 7 days price change
8 Cardano (ADA) ADA Cardano predictions 76% 43 $0.362541 -2.33% 6.05% $12 588 135 268 ADA 7 days price change
9 Lido stETH (STETH) STETH Lido stETH predictions 96% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 74% 51 $0.075059 -2.95% 0.21% $9 958 117 300 DOGE 7 days price change
11 Polygon (MATIC) MATIC Polygon predictions 76.4% 48 $1.11 -1.01% -7.45% $9 708 811 453 MATIC 7 days price change
12 Solana (SOL) SOL Solana predictions 74.4% 52 $21.67 -0.29% 6.07% $8 316 110 713 SOL 7 days price change
13 Binance USD (BUSD) BUSD Binance USD predictions 92% 1 $0.996930 -0.27% -0.39% $8 039 266 757 BUSD 7 days price change
14 Polkadot (DOT) DOT Polkadot predictions 71.6% 49 $6.16 -0.32% -4.71% $7 244 608 987 DOT 7 days price change
15 Litecoin (LTC) LTC Litecoin predictions 68% 58 $91.86 0.28% 9.72% $6 664 265 906 LTC 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2023 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.