Emma Nelson 
XRP’s price is currently experiencing a significant decline, and market analysts are increasingly concerned about the possibility of further losses. Recently, a bearish pattern has emerged, prompting investors to speculate whether XRP’s price could continue its downward trajectory, potentially dropping to even lower levels.
The cryptocurrency has been under considerable pressure, and if it loses the $2 support level, many experts believe that XRP’s price could face a deeper drop, possibly even falling below the $1 mark.
XRP
Head and Shoulders Pattern Signals Potential Bearish Trend
Market analyst Steph has pointed out that XRP is currently forming a “Head and Shoulders” pattern, a well-known bearish signal that indicates the possibility of a substantial price downturn. This pattern suggests that if the $2 support level is breached, XRP could see a sharp decline in its price.
The pattern, which consists of a left shoulder, head, and right shoulder, has become more evident as the price hovers around the $2 mark. If XRP’s price falls below this critical support level, experts warn that further declines could be imminent.
Steph emphasizes that it’s essential to confirm the breakdown with a daily or weekly candle close beneath the $2 level. At the time of the analysis, XRP was trading at $2.14 after briefly dipping to $1.92. Despite a brief recovery, analysts caution that the downward pressure might persist if XRP fails to hold the $2 support level.
What Could Happen if XRP Drops Below $2?
If XRP loses the $2 support level, the price could fall to a range between $1.20 and $1.17, based on the length of the head in the Head and Shoulders pattern. This level is particularly significant as it aligns with historical trading volume observed in November 2024.
Should the market confirm the breakdown with increased trading volume, the bearish outlook may become more likely. Some analysts warn that if the price drops below $1.20, the situation could worsen, with projections suggesting that XRP could hit $1.00 or even lower.
If XRP falls below the $1 support level, some analysts suggest placing buy orders below $1 to capitalize on potential short-term gains once the price stabilizes. Meanwhile, XRP’s cumulative volume delta (CVD) has turned negative, signaling that selling pressure is outweighing buying interest.
Although the risk of a flash crash to $0.90 exists, most experts believe the likelihood of such a sharp decline is low. Investors should focus on key support levels like $1.20. If this support holds, there could be a chance for a recovery back to the $2 range, although this would depend on the broader market conditions.
The Ripple Effect of the SEC Lawsuit on XRP’s Price
XRP’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) continues to play a pivotal role in the cryptocurrency’s price fluctuations. The case, which has been ongoing for several years, remains unresolved, and its outcome could significantly impact XRP’s future performance.
If Ripple wins the case, it could lead to a swift price surge for XRP, as it would signal a positive resolution for the cryptocurrency. However, if the company loses or faces additional legal challenges, the price of XRP could face additional downward pressure, further intensifying the current bearish outlook.
Despite the negative sentiment surrounding XRP, the cryptocurrency’s momentum oscillator, the Relative Strength Index (RSI), is nearing a critical level that could signal a major breakout. In the past, similar RSI patterns have often been followed by significant price increases, with one such instance leading to a nearly 500% surge in XRP’s price.
Bitcoin’s Influence on XRP’s Price Movement
In addition to XRP’s legal challenges, analysts also believe that Bitcoin’s price movements play a crucial role in determining XRP’s direction. Given that Bitcoin is often seen as a market leader, any significant decline in Bitcoin’s price could trigger a chain reaction, further pushing XRP’s price downward.
At the moment, Bitcoin is trading near the $83,000 mark, and if it experiences a notable drop below the $72,000 support level, it could cause XRP’s price to follow suit, potentially bringing it closer to the $1.20 support level or even lower.
In summary, XRP is at a critical juncture, with the $2 support level serving as a key battleground. If this level is lost, analysts suggest that the price could decline significantly, potentially dropping below $1. However, if XRP manages to hold above $1.20, there could still be hope for a recovery. Investors should keep a close eye on key technical levels, legal developments, and Bitcoin’s movements, as these factors will likely determine XRP’s near-term price trajectory.
