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||59.2%||84||$29 906.45||1.19%||-0.93%||$569 615 124 749|
|2||ETH||Ethereum predictions||59.2%||88||$2 006.73||1.31%||-3.60%||$242 575 430 000|
|3||USDT||Tether predictions||94%||1||$0.998861||0.02%||0%||$73 191 653 422|
|4||USDC||USD Coin predictions||95.2%||1||$1.000391||0.01%||0%||$53 095 646 398|
|5||BNB||Binance Coin predictions||56%||88||$316.79||1.33%||4.98%||$51 725 100 830|
|6||XRP||XRP predictions||57.6%||89||$0.417070||0.10%||-2.43%||$20 162 437 867|
|7||BUSD||Binance USD predictions||94.8%||1||$0.999756||-0.07%||-0.22%||$18 513 212 786|
|8||ADA||Cardano predictions||56%||91||$0.535071||0.10%||-4.15%||$18 052 780 745|
|9||SOL||Solana predictions||60.8%||88||$51.57||2.05%||-5.27%||$17 496 824 554|
|10||DOGE||Dogecoin predictions||58%||92||$0.085116||0.07%||-5.10%||$11 292 451 422|
|11||DOT||Polkadot predictions||58.4%||87||$10.08||0.86%||-9.13%||$9 955 703 739|
|12||AVAX||Avalanche predictions||58.8%||90||$31.39||4.58%||-10.83%||$8 448 611 482|
|13||WBTC||Wrapped Bitcoin predictions||63.2%||84||$29 892.78||1.26%||-0.99%||$8 268 429 569|
|14||TRX||TRON predictions||72.8%||53||$0.076139||2.55%||10.86%||$7 366 589 571|
|15||DAI||Dai predictions||96%||1||$1.000541||-0.05%||0.02%||$6 532 230 569|
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