Analyst Warns XRP Price Could Drop to $2.2 Amid Bearish Pattern
Crypto analyst TradinSides has indicated that investors may need to close their long positions in XRP due to a bearish pattern suggesting a potential price crash.
XRP Price Could Crash As Head And Shoulder Pattern Forms
TradinSides reported on TradingView that XRP might form a Head and Shoulders pattern, possibly driving the price to $2.2 or lower. This correction could occur if expected bullish fundamentals, such as the RLUSD stablecoin and upcoming XRP ETFs, do not materialize.
Despite some bullish indicators, XRP faces significant selling pressure due to the SEC's appeal of the Ripple case ruling, which affects demand and market sentiment. TradinSides mentioned SEC Commissioner Caroline Crenshaw’s reappointment, which could influence the Ripple case and XRP's price. Her renomination is scheduled for December 18, and if unsuccessful, Donald Trump could nominate a new Commissioner. The SEC must file its opening brief in the appeal case by January 15.
If Crenshaw is reappointed, she may support the Commission's filing, as she has previously adopted an anti-crypto stance. TradinSides suggested that XRP could experience further selling pressure if the SEC continues its appeal. Conversely, if the SEC withdraws its appeal, it may approve pending XRP ETF applications, potentially increasing demand. If these developments do not occur, TradinSides warns of a decline to $2.2.
The State Of Things
In an X post, analyst Dark Defender updated on XRP’s price action, noting a confirmed break in the 4-hour time frame. He stated that confirmation above $2.52 on the daily time frame could lead to a rally to $2.72.
Dark Defender identified key targets: short-term targets at $5.85 and $8.76, with support levels at $2.29, $2.24, $2.10, and $2.02. He has previously forecasted that XRP could reach $18 within this market cycle.
Currently, XRP is trading around $2.41, reflecting an increase over the past 24 hours, according to CoinMarketCap data.
