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Crypto analyst TradinSides suggested that it may be time for investors to start closing out their long XRP positions. This occurred when the analyst revealed a bearish pattern, which showed that the XRP price could witness a significant incident.
XRP price may collapse as the head and shoulders pattern forms
In the TradingView postTradinSides predicted that XRP may collapse as the price may form the Head and Shoulders pattern, taking the cryptocurrency to $2.2 or lower. The analyst said that this price correction could occur if some bullish fundamentals do not occur for the altcoin as expected. Fundamentals cited by TradinSides include the RLUSD stablecoin and the upcoming XRP ETFs.
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While these fundamentals present a bullish outlook for the XRP price, the crypto analyst said that XRP is still under strong selling pressure due to the SEC’s decision to appeal the Ripple case ruling, which is impacting demand and sentiment of the market. TradinSides alluded to the reappointment of SEC Commissioner Caroline Crenshaw and its ultimate impact on the economy Ripple case and the XRP price.
The analyst noted that Crenshaw’s reappointment is scheduled for December 18. However, if Crenshaw’s renomination fails, Donald Trump could appoint a new commissioner. Crenshaw’s renomination is significant as the SEC is due to file its opening brief in the appellate case on January 15.
If reappointed, she could vote in favor of the Commission filing its introductory brief, as it is known for taking an anti-crypto stance on several occasions. The crypto analyst believes the altcoin could face selling pressure if the SEC moves forward with the appeal.
On the other hand, if the SEC withdraws its appeal, TradinSides anticipates that the Commission may also withdraw its appeal. This would lead the agency to approve the pending XRP ETF Applicationswhich could increase demand. If this does not happen, the crypto analyst predicts that the Head and Shoulders pattern could take the XRP price to $2.2.
The state of things
In a post X, crypto analyst Dark Defender provided an update on the current XRP price action. He stated that the 4-hour timeframe confirms the pause for XRP. The analyst added that the daily range will be confirmed above $2.52. Once XRP surpasses that level, Dark Defender predicts the altcoin will rise to $2.72.
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The crypto analyst also highlighted crucial targets to watch out for. He said $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 already predicted that the price of XRP will rise sooner or later reach $18 in this market cycle.
At the time of writing, XRP price is trading at around $2.41, up over the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com