$XRP Price Crash to $2 as Head and Shoulders Pattern Performed
XRP price is on the verge of a crash to $2 after forming a bearish head and shoulders pattern on the daily chart.
As this crash looms, XRP faces the risk of $38 million in long liquidations, which will intensify sell-side pressure and trigger a massive price decline.
XRP trades at $2.12 today, May 31, with trading volumes surging by 14% in 24 hours per CoinMarketCap data.
The price was teetering from the typical weekend volatility, with XRP dropping by 3.6% in 24 hours.
Ripple price trades within a bearish head and shoulders pattern, as it defends a diagonal support level. This chart pattern usually indicates weakening bullish momentum and the entry of bears in the market, which will drag the price lower.
The target price for the head and shoulders pattern is the size of the head, which shows that a 15% decline to $1.98 is looming.
XRP price has already breached the neckline of this pattern, an indication that the bearish momentum it depicts could occur.
The bearish outlook in this pattern is also reflected in the technical indicators that signal a notable surge in sell-side pressure, with no interest from buyers, as traders hesitate to accumulate the dip.
The RSI indicator is on a steep downward slope and stands at 37, signalling that the momentum is currently bearish.
Despite inching closer to oversold levels, the RSI may have room for further dips because in early April, it dropped to as low as 31 before Ripple price made a bullish reversal.
Similarly, the MACD indicator signals a weak structure as the MACD line plunges below the zero line.
The red and negative MACD histogram bars are also lengthening in size, confirming that bears are strengthening their grip on the market after yesterday’s crash in XRP price and OI.
