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While the price of XRP has already decreased by -42 % since its peak at $ 3.40 on January 16, the famous technical trader Josh Olszewicz (Carpetom) warns that the upcoming leg may be imminent. Share daily graph analysis on X, OlszewICZ He writes“1D XRP: H&S + Harish Kumo Breakout Watch”, indicating that two important technology development can pay XRP prices in the near future.
Is XRP ready to crash $ 1.24?
“H&S” refers to the head and shoulders style, which is a known reversal formation in technical analysis. The pattern usually appears after a large upward raising and includes three consecutive peaks, with the highest peak (“head” higher than the pleading peaks (“shoulders”).
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In the case of XRP, the Olszewicz chart indicates that the central head constitutes about $ 3.40 in mid -January, while the shoulders seem to top between 2.83 to $ 2.90. Technical analysts pay close attention to the “neckline”, which generally works along the main support level below the summits. When the price is decisively broken down this neckline, it is seen as an affirmation that the pressure pressure has been overwhelmed by the purchase, which often leads to more from the negative side.
Olszewicz’s comment also highlights the phrase “Harish Kumo Breakout”, with a signal to Ichimoku Cloud, another prominent tool for momentum planning in the price of drawing and prediction. Ichimoku Cloud Analysis offers multiple transport averages forward on the graph and creates a “cloud” of support or resistance levels.
The rolling komo broken arises when the price movement clearly decreases to the bottom of the Ichimoku cloud and the future cloud itself turns in a way that indicates the weaker of the bullish momentum. The basic idea is that once the price of the original slides the cloud, the additional decrease becomes more likely, because the cloud that was previously working as support no longer provides a pillow.
From Olszewicz’s graph provided, the current price of $ 2.18 is located over a clear support area in the region of $ 2.00, which it explains as the neck line for the head and shoulders pattern. If this area allows the field, the bears are likely to dominate the market, as Fibonacci levels are distinguished on the graph to the potential first station near $ 1.94, followed by a more severe goal.
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The graph seems to highlight the level of Fibonacci extension by 161.8 % at about $ 1.24, which may play into force if the sale is accelerating. The presence of these Fibonacci levels does not guarantee a collapse of those bottles, but in particular, a typical H & S style collapsing may clarify more perdition.
The goal of profit for the pattern is generally the difference in the price between the head and the low point of any of the shoulder. Then this difference is offered from the neckline that can put XRP to less than $ 1.00.
Despite the blatant warning of the imminent “huge” prices, it is important to note that the comment Olszewicz, “1D XRP: H&S + Harish Kumo Breakout Watch” should be seen as an alert to merchants instead of irreversible prediction. Technical settings can fail if the bullish momentum turns or if the basics of the broader market are transformed, but at the present time it appears that the entire encryption market is driven by extreme fear.
At the time of the press, XRP was traded at $ 2.03
Distinctive image created with Dall.e, Chart from TradingView.com
