XRP’s long-running bullish trend could be in jeopardy as technical indicators point to a potential major breakdown. Crypto analyst Josh Olszewicz (@CarpeNoctom) has identified a textbook head and shoulders pattern forming on XRP’s daily chart, warning that if the pattern completes, it could trigger a deep correction.
Head & Shoulders Pattern: A Bearish Reversal in Play?
The head and shoulders is one of the most widely recognized reversal patterns in technical analysis. It consists of three peaks—the left shoulder, the head (highest peak), and the right shoulder—suggesting a loss of bullish momentum.
For XRP, this structure is playing out as follows:
- Left Shoulder: Formed in December 2024 around $2.90
- Head: The peak in January 2025, reaching $3.40
- Right Shoulder: Developing in February and March 2025, topping out near $3.00
- Neckline: Critical support at $2.00
If XRP breaks below $2.00, this bearish pattern could confirm, leading to a sharp decline. Olszewicz predicts a measured move target of $1.10 to $1.40, calculated by subtracting the pattern’s height ($1.30) from the neckline.
Ichimoku Cloud Confirms Bearish Outlook
Further reinforcing this downside risk is the Ichimoku Cloud indicator, which is flashing several warning signs:
- Price is trading below key support levels (Tenkan-sen at $2.24 and Kijun-sen at $2.45).
- The future cloud is red, signaling resistance and weakening momentum.
- Flatlining indicators suggest a loss of bullish strength.
These signals align with the potential breakdown scenario, making the $2.00 level a crucial support to watch.
Key Level for Bullish Invalidation: $2.85
While the bearish scenario is dominant, one key level could invalidate it—$2.85.
Olszewicz argues that for XRP to regain bullish momentum, it must reclaim this level, which marks the top of the right shoulder. A strong breakout above $2.85 would negate the head and shoulders pattern, paving the way for a renewed rally.
What’s Next for XRP?
For now, all eyes are on $2.00—the neckline of the pattern. If XRP closes below this level, the bearish breakdown could send the token plummeting toward $1.10-$1.40. However, the bullish cycle could resume if buyers step in and push XRP above $2.85.
Traders should watch XRP closely in the coming days, as this could be a defining moment for its 2025 price action.
