#HighlightPosts#  XRP price head and shoulders signal: Price could fall to $2.

XRP could fall to $2 after breaking out of a classic head and shoulders (H&S) pattern.
The decline in XRP futures open interest suggests weakening investor confidence.
The XRP XRPUSD  price is giving warning signals as a bearish technical pattern on the short-term charts is completed, with large long liquidations and decreasing open interest.
XRP H&S pattern indicates a 14 percent drop
XRP price action has formed a head and shoulders (H&S) pattern on the four-hour chart since May 9, indicating a possible downward move.
The head and shoulders pattern is a bearish reversal pattern that signals a trend reversal. It consists of three peaks: one higher peak (head) and two lower peaks (shoulders).
The pattern is completed when the price breaks below the neckline connecting the lows of the left and right shoulders. This indicates that the pattern is confirmed and is a potential sell signal.
In the case of XRP, the pattern was confirmed when the price broke below the neckline at $2.33 early in the Asian trading hours on May 19 and closed there.
If the price stays below the neckline, the XRPUSD pair could fall to the 200-day simple moving average, currently at $2.25, and then to the pattern’s target of $2.00. This would indicate a total loss of 14 percent from current levels.
A possible drop to $2.00 is currently on the table, as bullish momentum has diminished.
XRP price “must” defend the $2.30 support, which coincides with the H&S neckline, to avoid a drop to these targets.
A drop below $2.30 could trigger a major sell-off, with the first target around $2.15, followed by a drop to $1.60.
XRP Open Interest Drops $1 Billion in 5 Days
XRP Open Interest (OI) has decreased by 18% in the last five days to $4.49 billion. This OI decline indicates that investor confidence and liquidity are decreasing, which supports the downward price movement.
The recent decline in XRP price has forced the closure of $12 million worth of long positions in the last 24 hours, while only $1.4 million worth of short positions were liquidated.
This reflects bullish investors being forced to sell at a loss, which is pushing prices lower.
Importantly, XRP’s 3% drop in the last 24 hours was accompanied by a 70% increase in trading volume, reaching $4.1 billion. Increased trading volume during a price drop could indicate increased selling pressure or crypto investors repositioning as they await XRP’s next move.