Ripple’s (XRP) price action is flashing a major technical warning, as a bearish head and shoulders pattern has now formed and may soon activate. If confirmed, this pattern could send XRP plunging toward $0.61, a level with limited historical support.
Technical Breakdown: Bearish Head and Shoulders Pattern
XRP has completed a textbook head and shoulders formation, signaling a potential trend reversal from bullish to bearish. The neckline support, previously holding between $1.97 and $2.13, has recently been breached — marking a key shift in market sentiment.
Key Observations:
- Pattern Formation: Left shoulder and head were created during XRP’s run-up to a $3.37 high. The right shoulder formed a lower high, completing the setup.
- Neckline Breach: XRP has fallen below the neckline for the first time since December 2024.
- Swing Low Threat: If the current swing low breaks, it will confirm pattern activation and suggest a high-probability move down to $0.61.
Why $0.61 Is a Key Target
The $0.61 price level represents the projected downside target derived from the head and shoulders structure. Below current prices, there’s a visible lack of historical support, which could result in a swift, impulsive drop once the swing low is taken out.
This mirrors the sharp upside move seen when the head and shoulders pattern first began forming in late 2024 — meaning the reversal could be equally rapid in the opposite direction.
Trading Strategy: When to Consider Entry
For traders eyeing this setup, patience is critical.
- Entry trigger: A break and close below the current swing low will activate the bearish pattern and provide a confirmation for short setups.
- Target: $0.61 (based on the pattern’s height projection).
- Avoid premature entries: Entering before confirmation increases risk, especially if XRP reclaims the neckline.
Conclusion: XRP at a Critical Juncture
XRP’s recent price action suggests that the bears may soon take control. A confirmed breakdown would solidify the head and shoulders pattern and point to a deep correction toward $0.61. With the technical picture aligning and macro risks rising, traders should monitor this pattern closely for confirmation before making any significant moves.
