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Crypto analyst TradinSides has suggested that it may be time for investors to close out their XRP long positions. This came as the analyst revealed a bearish pattern, which indicated that the XRP price could witness one significant crash.
XRP price may crash as head and shoulders patterns emerge
In one TradeView postTradinSides predicted that XRP could crash as its price could form the Head and Shoulders pattern, sending the crypto to $2.2 or lower. The analyst stated that this price correction could happen if some bullish fundamentals did not happen as expected for the altcoin. The fundamentals that TradinSides cited include the RLUSD stablecoin and the upcoming XRP ETFs.
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While these fundamentals provide a bullish outlook for the XRP price, the crypto analyst stated that XRP is still under heavy selling pressure due to the SEC’s decision to appeal the ruling in the Ripple case, which influences demand and market sentiment. TradinSides hinted at the reappointment of SEC Commissioner Caroline Crenshaw and how it could ultimately impact the Wrinkle case and the XRP price.
The analyst noted that Crenshaw’s reappointment is scheduled for December 18. However, if Crenshaw’s reappointment fails, Donald Trump could appoint a new commissioner. Crenshaw’s reappointment is important because the SEC is scheduled to file its opening brief in the appeal on January 15.
If reappointed, she could vote for the Commission to submit its opening letter, as she is known to have taken an anti-crypto stance on several occasions. The crypto analyst believes the altco could come under selling pressure if the SEC continues the call.
On the other hand, if the SEC withdraws its appeal, TradinSides predicts that the Commission could withdraw its appeal as well. This would result in the agency approving the pending approval XRP ETF Applicationswhich could increase demand. If this does not happen, the crypto analyst predicts that the Head and Shoulders pattern could drive the XRP price to $2.2.
The state of affairs
In an X-post, crypto analyst Dark defender provided an update on the current XRP price action. He stated that the 4-hour time frame confirms the break for XRP. The analyst added that the daily timeframe will be confirmed above $2.52. Once XRP rises above that level, Dark Defender predicts the altcoin will rise to $2.72.
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The crypto analyst also highlighted crucial targets to look out for. He stated that $5.85 and $8.76 are short-term targets. Meanwhile, he said $2.29, $2.24, $2.10 and $2.02 are support levels to watch out for. Dark Defender has previously predicted that the XRP price would eventually rise Reach $18 in this market cycle.
At the time of writing, the XRP price is trading around $2.41, up in the past 24 hours, according to facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com