XRP price risks falling to $2 after classic bearish chart pattern confirms

XRP futures' open interest has dropped sharply in the past five days, creating downside prospects for XRP price and a potential retest of the important $2 level.

XRP H&S pattern hints at a 14% price drop

XRP price action has formed a head-and-shoulders (H&S) pattern on its four-hour chart since May 9, projecting a likely down-move.

The head-and-shoulders pattern is a bearish reversal pattern that can signal a change in trend. It consists of three peaks: a higher peak (head) and two lower peaks (shoulders).

It is resolved when the price breaks below the neckline (the line connecting the lows of the left and right shoulder), confirming the pattern and suggesting a potential sell signal.

In XRP’s case, the pattern was validated following a break and close below the neckline at $2.33 during the early Asian trading hours on May 19.

As Cointelegraph reported, a possible decline to as low as $2.00 is currently in play as bullish momentum has decreased.

For analyst Egrag Crypto, XRP price “must hold” the support at $2.30, which aligns with the H&S neckline, to avoid a breakdown toward these targets. #XRPRealityCheck