Chartist Shares XRP Price Worst Case Scenario

Charting Guy (@ChartingGuy), a well-known crypto analyst on X, recently shared his outlook on XRP, highlighting the potential for a bearish scenario. His analysis centers on the possibility of a head-and-shoulders pattern forming on the daily chart, which could push XRP’s price down to around $1.15.

Although he doubts this pattern will play out, he acknowledges it as a possibility worth monitoring. According to him, even if this scenario unfolds, it would merely serve as a “golden pocket backtest,” leaving the overall bullish trend intact with higher highs and higher lows.

The chart shared by Charting Guy focuses on crucial support levels and technical indicators. It displays the possible head-and-shoulders formation and outlines the target at $1.15.

The Head-and-shoulder Pattern

The chart shows that XRP began forming this pattern in December. It formed the left shoulder when it crossed $2 for the first time since 2018, and this rally began after former SEC Chair Gary Gensler announced his resignation. After a brief pullback, XRP began climbing again. This climb formed the head as the asset rose to a multi-year high of $3.39.

After a prolonged correction period, the asset experienced another surge after the U.S. Securities and Exchange Commission (SEC) agreed to drop its appeal against Ripple. This move caused XRP to rise to $2.5, forming the right shoulder.

Charting Guy emphasizes that recent pullbacks have consistently seen wicks down to the $1.70–$1.90 area, with all daily candle closes holding above $2. He views this zone as significant and plans to monitor it closely.

Key Support Levels and Future Trajectory

Charting Guy shared additional charts highlighting support levels for the digital asset. One of the charts features the weekly Ichimoku Cloud, with the baseline currently sitting at $1.94. This level is notable as it aligns with the support zone highlighted in the first chart.

Another chart showcases the Weekly Supertrend indicator, which identifies another support level at $1.73. This indicator, known for signaling trend reversals, suggests that the current bullish trend remains valid as long as XRP stays above this mark.

The last chart highlights the Weekly EMA Ribbon, with support levels ranging from $1.46 to $1.93. Maintaining price action within this range would indicate sustained bullish strength despite recent pullbacks.

Notably, other analysts have drawn attention to similar head-and-shoulder formations. Charting Guy noted that many altcoins might drop to fill their March 11 wick lows, with XRP potentially revisiting the $1.9 level. This could conclude the bearish phase, potentially giving way to another price rally instead of a further decline to $1.15.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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