Most cryptocurrencies have been trading sideways over the past few weeks with some notable exceptions including MakerDAO $MKR. The XRP Ledger's native token, $XRP, has gone the way of most other digital assets, but it too could soon break down, according to a crypto analyst.
Popular analyst CoinsKid recently said in a video shared with more than 270,000 subscribers on Google-owned video-sharing platform YouTube that a key technical pattern can now be detected on the cryptocurrency's chart.
According to the analyst, the XRP price chart has formed a head and shoulders pattern. Technical analysts use a head and shoulders pattern to identify a possible trend reversal. It consists of three peaks: a higher peak (head) between two lower peaks (shoulders) and usually indicates a bearish reversal, meaning that the price can go from an uptrend to a downtrend.
The analyst noted that if the price of XRP follows this pattern, it will continue to fall towards $0.46. On the other hand, CoinsKid also detected an ascending triangle pattern. An ascending triangle is a bullish chart pattern that shows a possible continuation of the uptrend.
It has a horizontal resistance line and an ascending support line and is completed once the asset price breaks the resistance line with high volume. The pattern, he says, could see XRP move towards a significant resistance level.
Notably, as CryptoGlobe reported, XRP-focused cryptocurrency investment products have been seeing inflows from institutional investors, with over $700,000 invested in these products over the past week.
So far this year, Ethereum-focused products have seen over $115 million in outflows, while Solana-focused products have seen $26 million in inflows. XRP products have seen inflows of $14 million over the same period, leading to assets under management of $60 million.
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