The third price of the largest encrypted currency at the present time, XRP, may be ready for a somewhat painful decline, at the very least. With all wild price fluctuations in the past few months, what appeared on the XRP price scheme can be considered as less than the head and shoulders style.
For those who are not aware of the term, this style features three waves of consecutive gatherings and declines, with a medium height and much higher correction than others.
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As a result, the price chart is decorated with a similar three -hills standing on the “neckline”. The neckline works as an important level to support prices. If the neck line is violated, the decline can be large like the second wave of growth. In reality XRP, this can mean 24 % correction of the neckline level, which is $ 2 for the popular cryptocurrency.
Therefore, XRP’s head and shoulder scenario is a decrease of $ 1.50. This is unlikely to happen overnight, which is the most cruel scenario. In the event of a collapse, the market is likely to see first re -testing the neckline, and if there is no bullish reaction there, $ 1.50 will become an almost inevitable goal.
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There are other scenarios as well. For example, XRP may find support in the neckline, and if the weekly closure occurs there, the Bulls’ aspirations for the currency will provide bias towards more growth. However, a decline in less than $ 1.50 in cards, because only the next main support level.
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Given that XRP has grown more than 500 % in the past few months, there is a large space for decrease. Unfortunately, this will completely erase any hopes of a constant crowd for XRP, so it is better not to let the neckline go.
