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||60.8%||76||$61 243.77||1.02%||1.11%||$1 154 572 840 442|
|2||ETH||Ethereum predictions||68.4%||57||$4 109.03||4.38%||6.19%||$485 054 173 428|
|3||BNB||Binance Coin predictions||72.4%||60||$481.29||0.25%||3.23%||$80 279 625 910|
|4||ADA||Cardano predictions||90.8%||12||$2.15||0.11%||-1.89%||$70 787 881 107|
|5||USDT||Tether predictions||96%||1||$1.000556||0.09%||0.06%||$69 612 761 722|
|6||SOL||Solana predictions||71.6%||54||$195.86||-3.60%||23.35%||$58 918 167 005|
|7||XRP||XRP predictions||70.8%||52||$1.088407||0.20%||-5.19%||$51 096 748 647|
|8||DOT||Polkadot predictions||63.2%||79||$43.63||-0.29%||3.79%||$43 086 190 756|
|9||DOGE||Dogecoin predictions||70%||56||$0.250784||5.45%||5.27%||$33 056 889 048|
|10||USDC||USD Coin predictions||95.6%||1||$1.000865||0.09%||0.09%||$32 551 622 838|
|11||LUNA||Terra predictions||68.8%||65||$42.68||-0.63%||15.43%||$17 137 911 904|
|12||UNI||UniSwap predictions||74%||48||$26.59||3.60%||-2.02%||$16 261 823 078|
|13||AVAX||Avalanche predictions||69.6%||65||$65.13||-0.86%||8.98%||$14 346 523 240|
|14||LINK||Chainlink predictions||76.4%||47||$30.61||7.77%||9.88%||$14 113 775 739|
|15||WBTC||Wrapped Bitcoin predictions||63.2%||75||$61 285.05||0.88%||1.17%||$13 592 575 892|
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2021 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.