Is The Worst Yet To Come For XRP? Analyst Issues Dire Warning
01 March 2025 - 11:30AM
NEWSBTC
While the XRP price is already down -42% since its peak at $3.40 on
January 16, renowned technical trader Josh Olszewicz (@CarpeNoctom)
warns that the next leg downward may be imminent. Sharing his daily
chart analysis on X, Olszewicz writes, “1D XRP: H&S + bearish
kumo breakout watch,” signaling that two significant technical
developments could push XRP prices lower in the near future. Is XRP
Poised To Crash Towards $1.24? The mention of an “H&S” refers
to the Head and Shoulders pattern, a well-known reversal formation
in technical analysis. The pattern typically emerges after a
substantial upward rally and includes three successive peaks, with
the middle peak (the “head”) higher than the flanking peaks (the
“shoulders”). Related Reading: XRP Price Continuation After Crash
Below $2.4? New Targets Emerge In the case of XRP, Olszewicz’s
chart suggests that the central head formed around $3.40 in
mid-January, while the shoulders appear to be topping out between
$2.83–$2.90. Technical analysts pay close attention to the
“neckline,” which generally runs along a key support level beneath
the peaks. When the price decisively breaks below this neckline, it
is viewed as confirmation that selling pressure has overwhelmed
buying interest, often leading to further downside. Olszewicz’s
comment also highlights the phrase “bearish kumo breakout,”
referencing the Ichimoku Cloud system, another prominent tool for
charting and forecasting price momentum. Ichimoku Cloud analysis
projects multiple moving averages forward on the chart and creates
a “cloud” of support or resistance levels. A bearish kumo breakout
arises when the price action clearly drops below the Ichimoku Cloud
and the future cloud itself shifts in a way that indicates weaker
bullish momentum. The core idea is that once an asset’s price slips
under the cloud, a further decline becomes more likely, since the
cloud that previously acted as support is no longer providing a
cushion. From the chart Olszewicz provided, the current price
action around $2.18 sits just above a conspicuous support area in
the $2.00 region, which he interprets as the neckline for the Head
and Shoulders pattern. If that zone gives way, bears could
potentially dominate the market, with Fibonacci levels marked on
the chart pointing to a possible first stop near $1.94, followed by
an even steeper target. Related Reading: XRP Breaks Down Below Key
Demand – Analyst Expects A Drop To $1.65 The chart appears to
highlight a 161.8% Fibonacci extension level at around $1.24, which
could come into play if selling accelerates. The presence of these
Fibonacci levels does not guarantee a breakdown to those lows, but
notably, a typical breakdown from the h&s pattern could spell
even more doom. The profit target for the pattern is generally the
price difference between the head and the low point of either
shoulder. This difference is then subtracted from the neckline
which could position the XRP price even below $1.00. Despite the
stark warning about an impending “massive” price crash, it is
crucial to note that Olszewicz’s commentary, “1D XRP: H&S +
bearish kumo breakout watch,” should be viewed as an alert for
traders rather than an irreversible prediction. Technical setups
can fail if bullish momentum returns or if broader market
fundamentals shift, but for now the entire crypto market seems
driven by extreme fear. At press time, XRP traded at $2.03 Featured
image created with DALL.E, chart from TradingView.com
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