XRP Bulls Need to Defend Near $2 Support After the Largest Price Drop Since November 2022. Here's Why.

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.

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.