XRP Price Decline

Prices for XRP, the payments-focused cryptocurrency used by Ripple to facilitate cross-border transactions, plummeted over 27% in the week ending March 9. This marks its largest weekly percentage decline since November 2022, according to data sources TradingView and CoinDesk.

Key Support Level

The sell-off has drawn attention to the key support level at $1.95. If breached, this could lead to more significant losses.

Head-and-Shoulders Pattern

The $1.95 level has served as a demand zone while forming a head-and-shoulders (H&S) topping pattern that has been developing since December. This H&S pattern comprises three peaks, with the middle being the highest, and a horizontal demand zone, called the neckline, identified by a trendline connecting the base of the three peaks.

Market Implications

A break below the neckline signifies weakness in demand and a shift from bullish to bearish trends in the market, which often results in deeper losses equal to the gap between the neckline and the middle peak.

The bulls need to defend the $2 support; failing to do so will trigger the H&S breakdown, opening doors for a decline to 60 cents, a level that acted as stiff resistance last year.

(TradingView/CoinDesk)