Cryptocurrency analyst TradinSides has suggested that it may be time for investors to start closing out their long XRP positions. This came as the analyst revealed a bearish pattern that showed the price of XRP could decline significant failure.

The price of XRP may decline as a head and shoulders pattern forms

In TradeView entryTradinSides predicted that XRP could crash as the price could form a head and shoulders pattern, taking the cryptocurrency to $2.20 or below. The analyst stated that this price correction could occur if some bullish fundamentals do not emerge for the altcoin as expected. The basics cited by TradinSides include RLUSD coin and upcoming XRP ETFs.

While these fundamentals present a bullish outlook for the XRP price, the cryptocurrency analyst said that XRP is still under forceful selling pressure due to the SEC’s decision to appeal the Ripple ruling, which has an impact on demand and market sentiment. TradinSides touched on the reappointment of SEC Commissioner Caroline Crenshaw and how it may ultimately impact Ripple case and the price of XRP.

The analyst noted that Crenshaw’s reappointment is set for December 18. However, if Crenshaw’s renomination fails, Donald Trump could appoint a fresh commissioner. Crenshaw’s renomination is significant because the SEC must submit its preliminary ruling on the appeal case on January 15.

If reappointed, she would be able to vote in favor of the Commission’s pre-application as she is known to have held an anti-crypto position on several occasions. A cryptocurrency analyst believes the altcoin could face selling pressure if the SEC pursues its appeal.

On the other hand, if the SEC withdraws its appeal, TradinSides anticipates that the Commission may also withdraw its appeal. This would result in the agency approving the pending application XRP ETF Appswhich may raise demand. If this does not happen, the cryptocurrency analyst predicts that the Head and Shoulders pattern could push the price of XRP to $2.2.

State of Affairs

In the post: X, cryptocurrency analyst Shadowy Defender provided an update on the current XRP price action. He stated that the 4-hour time frame confirms a break for XRP. The analyst added that the daily time frame will be confirmed above $2.52. Once XRP breaks above this level, Shadowy Defender predicts that the altcoin will rise to $2.72.

The cryptocurrency analyst also highlighted key targets to pay attention to. He stated that the short-term targets are $5.85 and $8.76. Meanwhile, he mentioned that the support levels to watch out for are $2.29, $2.24, $2.10, and $2.02. Shadowy Defender has previously predicted that the price of XRP will eventually change reach $18 in this market cycle.

At the time of writing, XRP 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