Seasoned market analyst Peter Brandt has identified a technical formation in XRP's price chart that could signal a significant downturn, potentially dropping the cryptocurrency to approximately $1.07, according to his recent social media post.
<u>What to Know:</u>
- XRP is displaying a "textbook" Head and Shoulders pattern that traditionally signals bearish market sentiment
- The cryptocurrency currently trades within a range between $1.90 support and $3.00 resistance levels
- Brandt emphasizes he has no personal investment position in XRP, stating he's merely analyzing technical indicators
Veteran Trader Identifies Bearish Pattern in XRP, Projects Possible 54% Decline
Brandt shared his analysis on X, highlighting what he describes as a classic Head and Shoulders (H&S) formation on the XRP/USDT daily chart.
The pattern, widely recognized among technical analysts, suggests a potential retracement toward the $1.07 region if certain price levels are breached. This bearish projection represents a 54% decline from XRP's current trading price of $2.35.
The veteran trader's chart examines XRP daily price movements from mid-October through late March on the Binance exchange. XRP experienced substantial growth during this period, climbing from below $0.50 in late October to surpass $1.00 by mid-November. After forming what traders call a bull flag pattern, the digital asset continued its aggressive upward trajectory.
XRP established a local top around $2.90 in early December before reaching its peak at approximately $3.40 in mid-January.
The cryptocurrency's current price sits near key technical indicators, with both the 8-day and 18-day moving averages converging at approximately $2.44.
Critical Price Levels Could Trigger Significant Movement
Two horizontal levels currently define XRP's trading range, according to Brandt's analysis. The lower boundary sits at approximately $1.90, functioning as the neckline for the potential H&S pattern and repeatedly serving as a support level for the cryptocurrency.
The upper boundary exists between $2.90 and $2.99, forming a resistance zone where XRP has struggled to maintain upward momentum.
Brandt notes that a decisive break below $1.90 "would not be ideal for longs," suggesting bearish implications for investors holding the asset. Conversely, any upward movement breaking above $3.00 could force short sellers to reconsider their positions, potentially triggering a price surge.
The technical formation Brandt identifies shows a left shoulder formed near the $2.90 level, followed by a higher peak at $3.40 that constitutes the "head" of the pattern. Subsequently, the right shoulder emerged closer to the $3.00 zone, with the pattern's neckline positioned at approximately $1.90.
According to traditional technical analysis, if XRP breaks below the neckline with sufficient trading volume, the measured-move target suggests a decline to approximately $1.07.
Brandt marks this price objective with a red arrow on his chart, indicating the potential downside risk inherent in classical H&S patterns.
Current technical indicators show muted momentum for XRP. The convergence of Brandt's 8-day and 18-day moving averages around $2.44 suggests consolidation at current levels. Additionally, the 30-day Average True Range (ATR) measures near $0.205, indicating that daily price volatility has compressed compared to the more dynamic price action observed during XRP's ascent from late 2024 through early 2025.
Despite this current compression in price movement, Brandt suggests that a break beyond either boundary of the current trading range could trigger renewed volatility. A decisive move above $3.00 or below $1.90 would likely catalyze more significant price action in the corresponding direction.
Brandt Emphasizes Objective Analysis
In his social media post, Brandt emphasized his neutrality regarding XRP's future price movement. "I have no vested interest up or down," he stated. "XRP is forming a textbook H&S pattern. So, we are now range bound. Above $3.000 I would not want to be short. Below $1.9 I would not want to own it. H&S projects to $1.07. Don't shoot the messenger."
This disclaimer underscores Brandt's position as an objective market analyst rather than an invested participant in XRP's price action. At press time, XRP traded at $2.35, positioning it within the identified trading range but below both key moving averages.
Conclusion
Peter Brandt's technical analysis presents a potentially bearish outlook for XRP if certain price levels are breached. While currently trading in a defined range, the cryptocurrency faces significant downside risk should it break below $1.90, with technical projections suggesting a possible 54% decline to $1.07.