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XRP Bulls Need to Defend Near $2 Support After the Largest Price Drop Since November 2022. Here's Why.
A move below the said support would trigger a major bearish reversal pattern, the price chart shows.
Updated Mar 10, 2025, 2:30 p.m. Published Mar 10, 2025, 12:41 p.m.
What to know:
- XRP, the cryptocurrency used by Ripple, experienced a significant drop of over 27% in the week ending March 9, marking its largest weekly decline since November 2022.
- Key support closer to $2, if breached, could lead to further losses. This level has been forming a head-and-shoulders (H&S) topping pattern since December.
Prices for XRP, the payments-focused cryptocurrency used by Ripple to facilitate cross-border transactions, plummeted over 27% in the week ended March 9, marking its largest weekly percentage decline since November 2022, according to data source TradingView and CoinDesk.
The sell-off has brought attention to $1.95, key support, which, if breached, could lead to more profound losses.
STORY CONTINUES BELOW
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The level has served as a demand zone while forming a head-and-shoulders (H&S) topping pattern, which has been developing since December. The 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.
A break below the neckline signifies weakness in demand and a bullish-to-bearish trend change in the market, often yielding deeper losses equal to the gap between the neckline and the middle peak.
The bulls, therefore, need to defend the support near $2, failing which will trigger the H&S breakdown, opening doors for a slide to 60 cents, the level that acted as stiff resistance last year.
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Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
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