Date: Wed, March 12, 2025 | 07:15 AM GMT
The cryptocurrency market remains under strong bearish pressure, continuing the correction phase that began after the late 2024 rallies. Ethereum (ETH) has plunged from its December high of $4,000 to its current level of $1,870, applying significant strain on altcoins across the board.
Despite the broader market downturn, XRP has shown relative resilience, experiencing a moderate 11% decline in the past 90 days. However, its current price action hints at a potential downside continuation as a key bearish pattern develops.
Head and Shoulders Pattern Signals Risk
On the daily chart, XRP is trading within a Head and Shoulders pattern—typically a bearish structure that suggests a potential trend reversal. After facing rejection from the right shoulder near the $3.00 mark, XRP has broken below its 100-day moving average (100D MA), now testing a crucial support zone between $1.91 and $2.17 (highlighted in the gray zone).
This level has previously acted as a strong demand zone, triggering multiple rebounds in the past. Holding this support could invalidate the bearish setup, allowing XRP to consolidate or push higher.
However, a breakdown below this range would likely confirm the Head and Shoulders breakdown, signaling a deeper correction toward the next major support at $1.61, aligning with the 200-day moving average (200D MA).
What’s Next for XRP?
XRP has demonstrated resilience despite major altcoin corrections. However, the current price structure suggests that failure to hold the $1.91-$2.17 support range could trigger a stronger sell-off. A rebound from this level, on the other hand, would invalidate the bearish pattern and potentially open the door for a recovery move.
Additionally, Bitcoin’s (BTC) retest of the $76,000 range—a key level following its inverse Head and Shoulders breakout—could influence broader market sentiment, impacting XRP’s direction in the coming days.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.