XRP Might Collapse to $1.1 If This Bearish Pattern Plays Out

According to cryptocurrency analyst Ali Martinez, the XRP cryptocurrency could be forming a “head-and-shoulders pattern.” 

If the pattern ends up playing out, the Ripple-linked cryptocurrency could plunge all the way to the $1.1 level.

On Feb. 28, XRP slipped to as low as $1.95 amid a brutal market sell-off. The token has now rallied by more than 15 % from that low, recovering in tandem with other major cryptocurrencies. 

However, the token is still down as much as 33% from its all-time high of $3.4 that was recorded on Jan. 16. 

XRP has now possibly formed the right shoulder of the popular bearish pattern after the price remained below the central peak. 

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It is worth noting that the formation of the right shoulder is typically accompanied by significantly lower trading volume, which is the case for XRP. 

The Ripple-linked cryptocurrency logged only $2.7 billion worth of trading volume on Saturday.

Bullish catalysts 

While the pattern could be viewed as a potentially bearish sign for the XRP token, there are some potential bullish catalysts that could throw a wrench in the works for XRP bears. 

According to Polymarket bettos, XRP ETF approval odds currently stand at 75% after slipping to 72% a few days ago.

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As reported by U.Today, the SEC has already acknowledged several XRP ETFs. 

There is also a 12% chance of the U.S. creating a national reserve with the XRP token, according to Polymarket. 

Last month, Ryan Rasmussen, head of research at Bitwise Asset Management, revealed that members of a multi-billion wealth management team also owned XRP in their crypto portfolios. Rasmussen explained that XRP had “strong” brand recognition and top-notch marketing.