XRP forms head-and-shoulders pattern, targets sub-$1 levels
In brief
- XRP formed head-and-shoulders pattern since June 5 targeting $0.99 downside.
- Four-hour bear flag on XRP chart targets $0.94, roughly 15% lower.
- RSI near 43 and MVRV bands suggest further downside toward $0.96 support.
Technical setup signals weakness
XRP was forming the right shoulder of the head-and-shoulders pattern as of Thursday, eyeing an initial dip toward the neckline near $1.09. If the price breaks below that level, the pattern's downside target sits around $0.99—a roughly 10% decline from where the token was trading.
The four-hour timeframe tells a similar story. XRP's bear flag pattern targets $0.94, with the token testing the flag's lower trendline near $1.10 on Thursday. A bear flag forms when price consolidates inside a rising channel after a sharp sell-off, typically signaling a pause before the prior downtrend resumes.
Momentum and on-chain metrics align bearish
The relative strength index (RSI) near 43 reinforces the bearish case, showing weak momentum below the neutral 50 level. XRP's MVRV pricing bands suggest the price still has room to fall toward the lower green zone, with the next major downside target near $0.96—about 13% below current prices.
Historically, that lower green band has acted like a bear-market magnet for XRP in previous cycles. It declined toward or below the same zone during major downturns in 2018, 2020, and 2022.
Bullish invalidation levels remain in play
A clear break above the right shoulder's peak at around $1.12 would invalidate the head-and-shoulders pattern. In that scenario, XRP may rally toward the 50-period EMA near $1.15, up 4.5% from current price levels. For now, though, the weight of technical evidence leans bearish.
