2. Head – created in late-2021, Roy Mark peaking at approximately $4,800 in November. Conversely, a double bottom appears as a ‘W’, with price rebounding twice from a support level. Double top and double bottom patterns signal potential reversals at market highs or lows. 3. Right shoulder – took shape from early-mid 2022 into mid 2025, with lows similar to the left shoulder around $3,500-$3,600. A double top can form when price tests the same resistance level twice before reversing lower, creating an ‘M’ shape. These patterns can be observed on intraday as well as daily charts. 5. Breakdown – a confirmed break below $1,800 with strong volume appeared to validate the pattern, projecting a potential price target near $20,000 over the long term.

Symmetrical triangle – converging trendlines – breakout can go either way. XRP’s price action between 16 May and 12 June 2021 exhibited characteristics of a symmetrical triangle, indicating contracting volatility and building pressure between converging trendlines. 0.83, converging toward the triangle’s apex. 0.95 on 6 June. Flags and pennants follow strong price moves, forming brief consolidation zones before the trend resumes. 0.84 on 11 June. 0.83 may have signaled the next directional trend, with the actual outcome being a breakdown around 16 June. Flags appear as small rectangles, while pennants are small, symmetrical triangles. Both indicate a pause before continuation.

Crypto Trading Cards

The inverse head and shoulders pattern is the opposite, indicating a possible transition from bearish to bullish. 1. Left shoulder – formed in early 2021, with price highs near $4,000 in May. A break above the neckline can signal the start of an uptrend. Here, the chart displays three troughs, with the middle one being the lowest. In 2021-2022, Ethereum (ETH)’s daily chart completed a multi-year head and shoulders pattern, with a price decline after neckline breakdown.

What are some examples of classic crypto chart patterns? The pattern is formed by three peaks: a higher middle peak (the ‘head’) between two lower peaks (the ‘shoulders’). Head and shoulders is a well-known reversal pattern. The ‘neckline’ connects the troughs between the peaks and acts as a support level. A break below the neckline with increased trading activity is traditionally seen as confirmation, though volume signals can be less consistent in crypto. Chart patterns may appear across cryptocurrency markets, from BTC to altcoins. While these formations are not exclusive to digital assets, the high volatility and round-the-clock trading in crypto can make their appearance seem more pronounced – and sometimes more visually distinct – than in traditional markets. It typically signals a shift from bullish to bearish momentum.

1. First bottom – formed in mid-April 2024, with SOL dipping to a $119.83 low. Triangles are consolidation patterns that often appear during periods of uncertainty. 2. Intervening peak – brief rally to $159.94 by late-April. Ascending triangle – flat top, rising lows – typically bullish. 3. Second bottom – retested support near $119.38 in early May. 4. Breakout – SOL surged above $160 resistance in mid-late May, confirming the double bottom before continuing higher through the month. Descending triangle – flat bottom, falling highs – usually bearish.