XRP Needs to Form Right Shoulder Before Surge: What’s the Lowest Point?

XRP bulls seem to be nearing a critical test of their resolve before the market enters its next significant phase, as analyzed in a recent video by CryptoInsightUK. The analyst suggests that the token is shaping an inverse head-and-shoulders pattern, indicating that the right shoulder needs to establish itself around the upper $1.80 range for any lasting rally to occur.

What is the Potential Drop for XRP?

In the segment, he pointed out that “dense liquidity is below us,” highlighting a cluster of resting bids and stop-loss orders that lie between about $1.92 and $1.80. “I still believe it will drop to create the right shoulder around $1.88,” he mentioned, suggesting a swift decline into this range could “flush out the lows and trigger a bounce.”

Currently, XRP is trading at approximately $2.24, reflecting a 3% increase over the last 24 hours, which implies a possible decline of around 20% if the market aligns with his bearish forecast. He reassured that such a pullback shouldn’t be alarming but rather a necessary step for a subsequent upward movement: “If we go down first, we’ve executed the downward part. Otherwise, I’ll remain concerned about a decline, even if we reach $2.42 or higher.”

Additional Insights

He connects the short-term bearish outlook to broader structural factors outside the XRP Ledger’s ecosystem. Notably, Bitcoin dominance has approached a critical historical threshold that has previously triggered altcoin rallies: “Any point in this range could signal the start of an alt-season… likely aligned with Bitcoin dipping to between $100,000 and $93,000.” A bump in dominance stemming from a downturn in Bitcoin would generally result in significant losses for major altcoins, including XRP, before liquidity rotates back into them.

In XRP’s order book, CryptoInsightUK noted a “liquidity vacuum” formed during the capitulation candle in May. Despite the token having recovered considerably from that rapid drop, he described its rebound as “choppy corrective price movement,” lacking the volume and conviction seen during earlier bullish trends. He views the right-shoulder drop as a means to eliminate leftover leverage, particularly among traders who aggressively purchased during the $2.15–$2.40 retracement.

What is the Potential Rise for XRP?

The inverse head-and-shoulders hypothesis also prominently features in his long-term chart dating back to mid-May. The analyst first showcased this pattern, identifying a left shoulder around $2.42, a head at $1.47, and a neckline slightly above $2.50. Forming a symmetrical right shoulder near $1.88 would project a target above $3.50, a level that hasn’t been reached since the cycle peak of late 2021.

Additional Insights

Market liquidity dynamics further emphasize his apprehension. He observed that the open interest in Ether perpetual swaps is “at an all-time high,” indicating that any abrupt decline in major cryptocurrencies could trigger a forced liquidation across altcoin pairs. “These individuals will be eliminated,” he cautioned, highlighting concerning negative-funding conditions that suggest an overcrowded short base eager to be squeezed once the final downward pocket is addressed.

Despite recent anxieties, CryptoInsightUK maintained a strongly bullish outlook for the macro environment. “I am highly confident that the next phase we’re entering will see significant growth in crypto,” he explained. He drew comparisons with gold’s record-setting weekly close, asserting that an underlying global risk aversion is subtly bolstering alternative stores of value, positioning both Bitcoin and XRP for substantial gains following the upcoming technical reset.

His guidance for long-term investors was clear: instead of making significant portfolio adjustments, treat any dips below $2.00 as key chances for accumulation. “Engaging in dollar-cost averaging from this point is advisable,” he noted, revealing that 97% of his funds are in spot positions, with only a small percentage kept for targeted bids in the $1.80–$1.92 range.

Whether XRP follows this outlined scenario will become evident in the coming days. If the market does indeed retreat into the high-$1.80s and rebound with the vigorous momentum anticipated by the analyst, the right shoulder will be complete—clearing the path for the long-awaited surge.

Currently, XRP is priced at $2.23.

Featured image created with DALL.E, chart from TradingView.com