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||95.6%||2||$27 039.83||2.05%||1.68%||$527 252 460 832|
|2||ETH||Ethereum predictions||93.6%||5||$1 673.68||2.76%||5.04%||$201 236 607 315|
|3||USDT||Tether predictions||96%||1||$0.999935||0.08%||0.01%||$83 271 159 494|
|4||BNB||Binance Coin predictions||94.4%||4||$216.15||1.27%||2.52%||$33 253 779 336|
|5||XRP||XRP predictions||92%||9||$0.510677||1.70%||0.44%||$27 225 409 135|
|6||USDC||USD Coin predictions||94.8%||1||$1.000031||-0.01%||0.01%||$25 532 133 625|
|7||STETH||Lido stETH predictions||92%||1||$2 941.39||-0.40%||-3.32%||$10 258 752 564|
|8||WTRX||Wrapped TRON predictions||85.2%||24||$0.088292||4.10%||5.99%||$8 977 186 451|
|9||ADA||Cardano predictions||91.6%||6||$0.251514||1.88%||2.61%||$8 835 312 768|
|10||DOGE||Dogecoin predictions||90%||4||$0.061731||1.06%||0.25%||$8 716 622 382|
|11||SOL||Solana predictions||84.8%||20||$20.15||4.81%||2.65%||$8 320 025 559|
|12||TRX||TRON predictions||84%||22||$0.088863||4.54%||6.44%||$7 915 896 490|
|13||TON||Toncoin predictions||60.4%||84||$2.23||1.65%||-2.84%||$7 660 748 928|
|14||DAI||Dai predictions||95.2%||1||$0.999533||-0.04%||0.01%||$5 345 391 790|
|15||DOT||Polkadot predictions||90%||7||$4.09||1.18%||1.62%||$5 023 915 784|
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