The weekly chart of Ripple (XRP) shows a head and shoulders pattern! Senior analysts: Don't rush to look for bearish speculation...

According to Gate, veteran analyst Peter Brandt has discovered a head and shoulders pattern on the Ripple (XRP) weekly chart, which typically signals the end of a rising trend. However, he urges traders to avoid bearish speculation, anticipating that bearish sentiment will fail.

The XRP derivatives market remains optimistic, with open interest increasing by 3%. Although the short-term outlook for XRP appears to be supported by the growth in open positions, the long-term charts show a head and shoulders pattern, which often indicates the end of an upward trend. Brand emphasized this pattern, stating that he remains optimistic about the price trend of XRP, as the token continues to stay above key support levels.

Brand shared a possible head and shoulders pattern, which typically appears before a bearish reversal. This pattern consists of three peaks, with the middle peak being higher than the other two, creating the shape of two shoulders and a central head.

He discovered that $1.8790 is the neckline for this formation on the weekly chart. It is worth noting that analysts believe the price volatility on April 7 (which formed a long line doji) was a deviation from the trend due to broader market influences.

Despite the bearish pattern observed, Brand urged traders to avoid bearish speculation as XRP remains above the neck line.

He pointed out that if the XRP price closes below the support level of $1.8790, he might look at the charts.

(Source: X)

XRP derivatives spark optimism

CoinGlass data shows that the open interest (OI) of XRP has increased by 6.55%, reaching 3.77 billion USD, indicating that buying activity has increased. The rise in OI is related to an increase in capital inflow, which may drive the price of XRP to rise under leverage.

The weighted financing rate of open positions changed from -0.0072% to a positive value of 0.0059%, indicating a sudden increase in buying activity. Long positions paying a positive financing rate are intended to coordinate the swap market and the spot market, as an increase in buying in the derivatives market may lead to price imbalances.

During the short-term recovery, a bearish position worth $9.38 million was liquidated, while bullish positions worth $3.1 million were closed.

(Source: Coinglass)

XRP price recovery aims to break through the 100-day EMA

FXStreet analyst Vishal Dixit stated that as of the time of writing on Tuesday, the rebound of the XRP price from the weekly low of $1.9083 helps to avoid a closing price below the key level of $2.00 for the day.

The price is close to the 50-day exponential moving average (EMA) at $2.2164, followed by the 100-day EMA at $2.2324. A close above the 100-day EMA could lead to a test of the upside trendline near $2.38, which was formed by the peaks of January 16, January 20, and May 14.

The Moving Average Convergence Divergence (MACD) momentum indicator shows that the MACD line is approaching a bullish crossover signal line. This crossover is considered a buy signal.

At the same time, the Relative Strength Index (RSI) indicates a rise from bearish levels to the midline.

If XRP fails to maintain above the $2.00 threshold, it may test the neckline of $1.8790 emphasized by Brand, thus facing a greater risk of a pullback.

(Source: Trading View)