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||87.2%||21||$20 343.76||0.74%||4.35%||$390 002 144 811|
|2||ETH||Ethereum predictions||60.8%||78||$1 371.86||1.23%||2.24%||$168 287 742 378|
|3||USDT||Tether predictions||92.4%||1||$1.000141||-0.01%||0.01%||$68 222 178 413|
|4||BNB||Binance Coin predictions||83.2%||21||$296.37||0.50%||4.40%||$47 815 124 698|
|5||USDC||USD Coin predictions||94%||1||$0.999980||0.01%||-0.02%||$46 433 199 437|
|6||XRP||XRP predictions||60.4%||85||$0.496669||4.51%||12.60%||$24 763 202 282|
|7||BUSD||Binance USD predictions||93.6%||1||$1.000043||0.05%||0.03%||$21 043 130 520|
|8||ADA||Cardano predictions||76.8%||42||$0.434909||0.55%||-0.40%||$14 899 368 238|
|9||SOL||Solana predictions||83.2%||21||$34.30||0.54%||1.72%||$12 185 648 954|
|10||STETH||Lido stETH predictions||94.8%||1||$2 941.39||-0.40%||-3.32%||$10 258 752 564|
|11||DOGE||Dogecoin predictions||84.4%||21||$0.066218||1.79%||8.97%||$8 785 142 892|
|12||MATIC||Polygon predictions||70.8%||56||$0.846366||0.82%||12.86%||$7 392 430 810|
|13||DOT||Polkadot predictions||73.2%||59||$6.48||1.22%||0.75%||$7 283 638 838|
|14||DAI||Dai predictions||93.6%||1||$0.999775||0.01%||0.02%||$6 788 649 987|
|15||WTRX||Wrapped TRON predictions||93.6%||5||$0.062676||0.57%||4.44%||$6 372 618 183|
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