XRP price faces a $1.80 risk as a bearish head-and-shoulders pattern forms, with resistance holding firm despite a 5.2% rise to $2.19.
On June 17, XRP price was trading at $2.19, up 5.2% over the previous four days.
Ripple’s price forecast is still pessimistic despite recent gains.
There is still a chance that the price will fall to $1.80, according to two technical structures:
one on the shorter four-hour timeframe and the other on the longer daily timeframe.
XRP Price Is Below Significant Resistance, Still Under Bearish Pressure
Despite the recent 7x increase in XRPL daily active addresses, most retail traders remain away from the market.
As a result, XRP price has been trading below a significant resistance level for the past three weeks since May 29, according to data from CoinMarketCap.
This level falls between $2.27 and $2.30, where XRP has been rejected five times.
After short-term buyers hoping to benefit quickly reacted to the announcement of establishing an XRP ETF in Canada, the most recent rejection occurred on June 16.
However, this upswing also failed, indicating that bears are putting sell orders at current prices.
XRP will continue under negative pressure and might drop by almost 9% below the psychological support of $2 until it breaks through this sell wall.
The green volume profile bars also indicate that buyers are not drawn to the $2.27 to $2.30 range.
As a result, if traders sell here, XRP price falls since there isn’t enough demand to buy the sold coins.
The price usually returns to support around $2.10 as a result of the persistent rejections.
If these circumstances continue, it might keep buyers out of the market, allowing bears complete control over the price and leading to a drop to $1.82.
Head, Shoulders Pattern Turns Bearish
On a daily basis, XRP also seems to form a bearish head and shoulders pattern, which typically indicates that a trend will turn back to the bearish side.
If the price closes decisively below the neckline of this resistance, which is $2.12, it may precipitate a 19% fall.
XRP price might drop below $1.80 and reach the head and shoulders pattern’s target of $1.70 if it breaks through this support level.
As XRP remains below the 50-day SMA level of $2.27, the SMA indicators support the bearish argument.
The price has encountered heavy resistance here since there hasn’t been a clear breakout from the resistance zone for three weeks.
Furthermore, the long-term prognosis is likewise bearish, as indicated by swings below the 200-day SMA.
A recent CoinGape research further supports the bearish momentum shown by the RSI, which has a value of 48.
It notes that the XRP/ETH ratio appears to be about to drop by 40%.
Thesis Of Invalidation
Several macro reasons imply that buyers may intervene if the circumstances improve, as the technical structures indicate an increasing risk of a possible drop in the price of XRP to $1.80.
These consist of:
After Canada authorized this product, which is scheduled to launch on June 18, there is a greater chance that the US SEC will introduce a spot XRP ETF and the GENIUS stablecoin act‘s final vote on June 17 may spur interest in stablecoins like RLUSD and raise the price of XRP.
Therefore, there is a chance of a drop to $1.80 because the four-hour and daily charts show that bears have the upper hand regarding how the price of XRP could perform in the near term.
In the short run, a few bullish macro factors might attract buyers and support a comeback.
