The formation of a head-and-shoulder pattern on the Ripple / Bitcoin chart has caused concern among many traders, especially buyers. It should not be forgotten that the head and shoulders pattern is one of the most accurate patterns in trading and predicting market fluctuations.
to the the report Coin Telegraph, Completing the head and shoulders pattern could lead to sharp downturns in Ripple prices.
To confirm the head and shoulder pattern and complete it, the price must fall below the neckline support. The volume of transactions in this reduction should also be high. In most cases, the neck is considered as an entry point for sellers.
Probability of falling to the historic floor
Peter Brandt, a leading market analyst, says the head-to-shoulder pattern on the Ripple chart is taking shape. He predicted in his tweet yesterday that, given the state of the head and shoulders pattern, we may soon see wide fluctuations in the Ripple / Bitcoin currency pair chart. He wrote in another part of his tweet:
Completing the head and shoulders pattern sets the price target for Bitcoin within the historic floor.
The range between the peak of the head and shoulder pattern and the neckline appears to be about 1,794 Satoshi. On the other hand, the neck support is at 2,120 Satoshi. Therefore, it can be said that the profit of traders is between 2,120 and 1,794 Satoshi.
Support for Ripple
As Ripple moves closer to its historic floor, it sees significant support.
The Ripple / Bitcoin exchange rate was revived from support for the 200-day simple moving average at 1,696 Satoshi. If the Ripple price stabilizes above this area, the probability of reaching the neck of the head and shoulder pattern at 2,120 Satoshi is high. If Ripple can close above 2,120 Satoshi, the head and shoulder pattern will be invalidated.
On the other hand, if the price falls below the simple 200-day moving average, we may see a fall to the support of 1,555 Satoshi. This level had acted as a ripple bed for a 170% jump in November 2020. Trading volume data show that trading activity has decreased in recent months; This makes the upcoming support less powerful in terms of sales volume, while breaking the head-and-shoulders pattern will add to the downside. The 847 Satoshi will be Ripple’s last stronghold.
Ripple / Dollar
The price of the ripple / dollar pair continues to fluctuate in its one-month downward channel. However, there is also the possibility of finding an opportunity for a jump.
Ripple prices rose 44.5 percent on Tuesday after reaching support for the channel. The jump saw a peak of $ 0.69. In this process, the buyers’ goal was to bring the price to $ 0.78.
It should not be forgotten that $ 0.69 acted as a resistance from November 2020 to April 2021 (April 1400).