An analyst has pointed out how XRP and three other altcoins look like they share a similar technical analysis (TA) fate. Here’s what could be in store for these assets.
TA Patterns Are Pointing At Same Outcome For Four Altcoins
In a new post on X, analyst Ali Martinez has identified a commonality among XRP (XRP), Ethereum Classic (ETC), Bitcoin Cash (BCH), and yearn.finance (YFI).
The similarity lies in the signals that TA is providing on the price charts of each of these altcoins. Here are the graphs the analyst shared, showing the patterns:
The first chart (top left) highlights the trend in the 1-day price of XRP, the fourth largest cryptocurrency by market cap. It appears that the asset has been forming what’s known as a head-and-shoulders pattern.
This pattern forms when an asset’s price shows three peaks following a sharp surge, with the inner and outer peaks being similar in scale (the shoulders), and the middle one being the largest (the head). The formation also incorporates a support trendline that facilitates the formation of the different peaks.
From the graph, it is evident that XRP is currently retesting this support line after forming its third peak (the right shoulder). The head-and-shoulders pattern typically signals a reversal of trend, so there is a possibility that the coin may fail this retest, potentially leading to a sharp decline.
Bitcoin Cash, as seen in the bottom right chart, is also retesting what could be a significant support line. The trendline here forms the lower boundary of a symmetrical triangle.
The symmetrical triangle occurs when an asset consolidates between two trendlines that converge with opposite slopes. As the price moves within this channel, the distance between peaks and troughs becomes narrower.
The upper channel functions as resistance, while the lower provides support. With the consolidation approaching the triangle’s apex, a breakout is anticipated. Currently, Bitcoin Cash is nearing the triangle’s end, so a breakout may occur soon. If BCH breaks below the lower trendline during its retest, it could signal a bearish trend similar to what XRP might experience.
The remaining two altcoins, Ethereum Classic (top right) and yearn.finance (bottom left), are both near the lower boundary of a parallel channel. In this pattern, consolidation occurs between two parallel trendlines.
There is a chance that support may hold for these coins, as it has in the past; however, considering they have been trading inside the channel for a couple of years and the sector has shifted towards a bearish sentiment, a downward breakout is plausible.
Only time will reveal whether XRP and the other altcoins will follow the trajectory that TA is indicating.
XRP Price
As of this writing, XRP is trading around $2.06, reflecting a decline of over 16% in the last seven days.
