The post Ripple [XRP] shows reversal signals – Is THIS pattern a warning? appeared on BitcoinEthereumNews.com.

The head-and-shoulders pattern signaled a potential bearish reversal for Ripple, with key support levels at $2.40 and $2.15. On-chain activity remained strong, with rising active addresses and a balanced market sentiment. Ripple [XRP] has been riding a wave of volatility recently, with a significant price surge followed by the formation of a head-and-shoulders pattern on the chart. This pattern, typically signaling a reversal, raises concerns about whether XRP’s bullish momentum can continue.  At the time of writing, the altcoin was trading at $2.40, down 1.96% in the last 24 hours. The question is whether this pattern will result in a price decline, or if XRP can break through resistance levels and keep its upward trend intact. Head-and-shoulders pattern: Is XRP headed for a fall? The head-and-shoulders pattern is a well-known technical indicator that signals a potential bearish reversal. This formation features a central peak (the head) flanked by two smaller peaks (the shoulders), suggesting weakening buying pressure. The neckline acts as a critical support level, and a break below it often confirms a downward trend. However, XRP has key support levels at $2.40 and $2.15, which may prevent a significant price drop. If these levels hold, XRP could stabilize and continue testing higher resistance zones, such as $2.61 and $2.90. Source: TradingView Active addresses and transaction count: Are users still engaged? Despite the price fluctuations, XRP’s on-chain activity remains strong. Active addresses have increased by 1.12%, reaching 30.39K, indicating rising participation within the network.  Source: CryptoQuant Additionally, the transaction count has seen a slight uptick of 0.77%, showing continued interest in XRP despite recent volatility. This suggests that, regardless of price movements, XRP’s network activity is healthy and growing, which could support its value in the long run. Taker buy-sell ratio: Is the market in equilibrium? According to CryptoQuant, XRP’s…

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Filed under: News - @ March 22, 2025 9:28 am