Is XRP Price Ready to Skyrocket?
XRP has recently created its first lower highs since November 2024, trading within a head and shoulders pattern. After surging to $3.40 in January 2025, the price has retraced, raising concerns about a possible breakdown.
XRP’s Price Surge and Retraction
XRP surged 300% in 2024, reaching $3.40 in January 2025 as per Coinpedia market data. After a correction, the price spiked again on March 2 following Donald Trump’s announcement of a strategic crypto reserve. XRP became the second-biggest beneficiary of the news, but much of the gain was retraced, leaving XRP vulnerable to a breakdown from the head and shoulders pattern.
The Head and Shoulders Pattern: A Bearish Signal?
XRP is trading inside a head and shoulders pattern, a bearish technical formation that suggests a potential price reversal. The key question is whether XRP Price can regain momentum or if the pattern will break down, leading to a deeper correction.
XRP’s Lower High and Potential for a Breakdown
On the weekly chart, XRP has fallen since reaching $3.40 in January 2025. The price formed a lower high, signaling potential weakness. This suggests that the $3.40 peak was likely a deviation above the $2.85 resistance level, and the price is now trading below it.
Technical Indicators Show Weakness
Key indicators also show weakness. The Relative Strength Index (RSI) has a bearish divergence, and the Moving Average Convergence/Divergence (MACD) made a bearish cross, indicating further downside risk.
What’s Next for XRP?
The most likely scenario is a downward move toward the range low. If XRP fails to recover, it could face a deeper correction.
XRP’s current price action, combined with the head and shoulders pattern and weak technical indicators, suggests a potential breakdown. Traders should monitor XRP closely for signs of either a reversal or further decline.
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