XRP has been facing downward pressure in recent trading sessions, with analysts expressing concerns about a possible extended decline. Crypto analyst Steph recently shared insights on X, highlighting a bearish pattern developing in XRP’s price action. He warned that the cryptocurrency may be at risk of further losses if critical support levels fail.
The pattern in question is a Head and Shoulders formation, a well-known technical indicator that often signals a potential trend reversal. While Steph initially believed the setup was unclear, recent market conditions have strengthened its formation, making it more distinct.
At the time of his analysis, XRP was approaching a critical support level, with its ability to hold this threshold seen as a decisive factor in determining its short-term price direction.
#XRP HUUUUUGE WARNING!!!!!!!!! pic.twitter.com/lllwRykRsN
— STEPH IS CRYPTO (@Steph_iscrypto) March 10, 2025
Key Support Level That Could Define XRP’s Trajectory
As of now, the asset is trading around $2, a crucial support level that also serves as the neckline for the emerging Head and Shoulders pattern. The analyst also noted holding above this mark is essential for preventing a significant price drop.
However, he emphasized that a daily or weekly close below this threshold would confirm the bearish setup. A confirmed breakdown could trigger additional selling pressure and push the price lower. Earlier yesterday, XRP briefly dipped to $1.92 before rebounding to $2.2, avoiding an immediate breakdown. Despite this recovery, analysts remain cautious, noting that the risk of further decline has not been eliminated.
Potential Drop to $1.20 if Breakdown Occurs
If XRP fails to maintain support at $2 and a confirmed breakdown occurs, Steph has projected a potential price decline to the range of $1.20 to $1.17. This target is derived from the Head and Shoulders pattern, with the expected drop based on the distance from the head to the neckline.
Steph also pointed out that this price zone previously saw heavy trading volume in November 2024, which could act as a key support region if XRP revisits it. However, he stressed that such a decline would only be validated if the breakdown is accompanied by strong selling volume.
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Other Analysts Echo Bearish Warnings
Beyond Steph’s analysis, other market observers have also raised concerns about the token’s outlook. Analyst Ali Martinez recently issued a similar warning, suggesting that a drop to $1 is possible if XRP sustains a breakdown below $2.
Martinez noted that the token has completed the right shoulder of the Head and Shoulders formation, further reinforcing the potential for a downward move. While some investors remain optimistic about the token’s long-term prospects , an increasing number of analysts are cautioning that the cryptocurrency could experience heightened volatility in the near term.
As market participants monitor the token’s movements, all eyes remain on the $2 support level, which could determine whether the cryptocurrency stabilizes or continues its downward trend.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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