XRP Plummets 5% in 24 Hours as Bearish Pattern Emerges

XRP, the fourth largest cryptocurrency by market capitalization, has recently experienced a notable downtrend, with its price declining by nearly 5% in the past 24 hours. This price drop has sparked concerns among investors and analysts, with some predicting a potential fall to as low as $1.20.

Market analyst Ali Martinez has identified a bearish pattern forming on the XRP price chart, specifically a head-and-shoulders formation. This pattern is a common reversal signal that typically appears at the peak of an uptrend before a significant downtrend begins. The pattern starts with an initial price peak, followed by a moderate pullback, and then a higher price peak, which is the head component. The pattern is completed by a right shoulder formed by choppy price action.

Martinez warns that if XRP breaks decisively below the neckline at $2.20, the crypto asset could fall as low as $1.20, representing a potential 50% fall from XRP’s local highs seen in February. To neutralize this bearish projection, XRP bulls must provide enough market demand to push the coin past the right shoulder peak of $3.00, signaling momentum for a prolonged price uptrend.

At the time of writing, XRP is trading at around $2.34, following a 4.56% decline in the last 24 hours. However, its weekly chart reflects gains of 9.44%, pushing the asset into minor monthly gains of 0.34%. The cryptocurrency has recently dipped below its 100-day Simple Moving Average, correlating with fears of a sustained price fall. Despite this, the XRP community remains largely bullish, according to data from CoinMarketCap.

In addition to the head-and-shoulders pattern, other analysts have also expressed concerns about the potential for a significant price drop. If the pattern plays out, XRP may drop toward the $1.70-$1.90 range. Watch for increased volume on the breakout to confirm the move. Some analysts have even suggested that a drop below $1.20 could delay the rally, highlighting the potential for significant movements in either direction.

Despite the bearish sentiment, some analysts remain optimistic about the potential for a price rebound. They point to the resilience of the X