Market analyst Ali Martinez believes XRP could rise to a new all-time high if it avoids closing below a major technical formation.
His recent analysis comes as XRP has slipped into a potentially bearish phase in the short-term. For context, XRP has recorded three bearish candle closes since March 7, dropping by a substantial 18.84% within this period, as it now trades at the lower end of the $2 price mark.
XRP Forms Bearish Head and Shoulders Pattern
Amid this price performance, Martinez confirmed that XRP has formed a bearish head-and-shoulders pattern on the daily timeframe. For context, the Head and Shoulders structure is a trend reversal pattern with three peaks: a higher middle peak (head) between two lower ones (shoulders).
Particularly, XRP formed the left shoulder when it soared to a peak of $2.9 in December 2024 amid the uptrend that began on the back of Donald Trump’s election victory. However, the asset witnessed a roadblock at this top, eventually facing a pullback toward the neckline at $2.
Nonetheless, the bulls formed massive support at the neckline, eventually recovering to hit $3.4 in January 2025. This higher high formed the head of the pattern. After another pullback and a subsequent recovery, XRP rose to $3 earlier this month on the back of the crypto reserve announcement, forming the right shoulder.
With the neckline at $2, Martinez confirmed that this level is very important for XRP’s future trajectory. Currently, the bearish pressure is pushing the asset toward the neckline. Notably, if XRP breaches below the neckline, this would validate the head and shoulders pattern, leading to steeper price declines.
Potential Rally to $5
However, if the asset retests this neckline and stages a recovery effort, the rebound could lead to greater heights. According to Martinez, XRP has the potential to reach the $5 price mark, representing a new all-time high. For this to occur, the asset must break above the right shoulder at $3 after retesting the neckline and recovering from the downtrend.
Meanwhile, another market watcher CryptoLax confirmed that XRP has held up better than other altcoins amid the ongoing downtrend. For instance, XRP is still up 2.78% this year despite the downturn. However, Ethereum (ETH) is down 38% within the same timeframe, and Solana (SOL) has collapsed 33%.
According to CryptoLax, the 200-day Exponential Moving Average (EMA) currently at $1.85 is a point of interest for XRP. Notably, should the asset continue to fall, this level would serve as a major support. Currently, XRP changes hands at $2.14 at press time, up 0.27% on the day.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
