Prices for XRP, the payments-focused cryptocurrency used by Ripple to facilitate cross-border transactions, fell over 27% during the week ending March 9, marking the largest weekly percentage of percentage since November 2022, according to data source trading and Coindesk.
Sales have brought attention to $ 1.95, key support, which, if violated, could lead to deeper losses.
The level has served as a demand zone while forming a head-and-shoulder (H&S) topping pattern that has evolved since December. The H&S pattern includes three peaks, with the middle being the highest and a horizontal demand zone, called the neckline, identified by a trendline connecting the base to the three tops.
A break during the neckline means weakness in demand and a bullish-to-bearing trend change in the market, often causing deeper losses similar to the gap between the neckline and the middle top.
The Bulls therefore have to defend the support near $ 2, failing, which will trigger the H&S collapse, open doors for a slide to 60 cents, the level that served as stiff resistance last year.
