XRP Faces 55% Correction Risk If Price Drops Below $1.90

Crypto analyst Ali Martinez recently highlighted a head-and-shoulders pattern forming on XRP’s daily chart. This technical formation is often considered a bearish reversal signal, suggesting that the asset could experience a significant price drop if it fails to hold key support levels. The critical support level, the neckline, is around $2.05. If XRP breaks below this level, it may decline toward lower prices, possibly below $1.50.

Martinez noted that an upward breakout could shift sentiment. Specifically, he stated that “if XRP can break above $3, it would invalidate the current head-and-shoulders pattern, potentially flipping the outlook bullish.” A move above this level would disrupt the pattern’s structure and could lead to renewed buying pressure, supporting a continued uptrend. A decisive break above $3 would indicate strong bullish momentum and could attract traders anticipating a reversal. Such a move might also coincide with broader market strength or fundamental developments that drive demand for XRP.

Veteran chartist Peter Brandt has warned that if XRP closes below the critical neckline at $1.90, it could trigger a 55% correction, dropping the price to approximately $1.07. Brandt emphasized the importance of the $1.90 level, stating that a price increase above $3.00 would invalidate the H&S pattern, while a decline below $1.90 would raise the risk of a significant correction. Another respected analyst, MartyParty, supports Brandt’s bearish scenario, anticipating a retracement to around $1.60 based on the H&S structure.

However, the bearish projection remains speculative until XRP closes below the $1.90 neckline. Currently, XRP is trading above its 200-day moving average, which could negate the H&S formation and trigger bullish momentum. Technical analyst Ali Martinez suggests that if XRP breaks above the $3 mark, it could target $5, invalidating the bearish pattern and potentially flipping the outlook bullish. Dark Defender similarly points to a bullish breakout from a long-term consolidation phase and Fibonacci targets that support positive price action.

Despite the prevailing bearish sentiment, some analysts argue that the potential collapse could be avoided. XRP is holding above the 200-day moving average, a factor that could negate the H&S formation and trigger bullish momentum. If XRP avoids closing below the head-and-shoulders neckline and breaks above the right shoulder instead, it could invalidate the bearish pattern. This move might trigger a bullish breakout toward $5.

Currently, XRP price action is indecisive. A symmetrical triangle on shorter timeframes indicates volatility ahead. Traders should closely watch immediate support at $2.32, resistance at $2.42, and particularly the neckline level at $1.90 for clearer signals. The RSI at 39.27 signals weak momentum, and traders should await a decisive breakout below $2.32 or above $2.42 for clearer direction. As XRP faces uncertainty, investors are turning their attention to emerging opportunities in the cryptocurrency market.