XRP prices, cryptocurrency centered on payments used by Ripple to facilitate cross -border transactions, collapsed more than 27% in the week that ended on March 9, marking its greatest weekly percentage decrease since November 2022, according to the Trans -Recoming and Coindesk data source.
The mass sale has drawn 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 coverage pattern (H&S), which has been developed since December. The H&S pattern includes three peaks, the medium being the highest and horizontal demand zone, called a neckline, identified by a trend line that connects the base of the three peaks.
A rupture below the neckline means weakness in demand and a change of bullish trend to load in the market, often producing deeper losses equal to the gap between the neckline and the middle peak.
The bulls, therefore, need to defend the support about $ 2, failing, which will trigger the breakdown of H&S, opening doors for a slide to 60 cents, the level that acted as a rigid resistance last year.
