Renowned Trader Peter Brandt Warns of Head and Shoulders Pattern Forming on XRP's Daily Chart, Suggesting a Significant Price Decline May Be Imminent.

Despite XRP's recent upward movement and projections, Brandt warns that the asset could face a sharp correction, bringing its price closer to the $1 mark.

Renowned trader Peter Brandt has highlighted a head and shoulders pattern forming on XRP’s daily chart, suggesting a significant price decline may be imminent.

Despite XRP’s recent upward movement and projections, Brandt warns that the asset could face a sharp correction, bringing its price closer to the $1 mark.

Brandt, who has over five decades of trading experience, shared this analysis in a recent post, highlighting how XRP’s inability to sustain its previous bullish momentum raises concerns about an impending downturn.

Currently, the asset is trading around $2.35, but it has struggled to maintain the kind of growth seen in other altcoins like Dogecoin and Shiba Inu. Today, the asset has already retraced by 3.81%, reflecting some market uncertainty.

Token Faces Potential 55% Decline

According to Brandt, the asset is showing a clear head and shoulders formation, a technical pattern that often signals a transition from an uptrend to a downtrend. The trader identified the left shoulder at the asset’s December 3 peak of $2.9070, followed by the head at the January 16 high of $3.3999. The right shoulder was formed on March 2 when XRP surged to $3.0153 following the announcement that Donald Trump’s administration would include XRP in the U.S. crypto reserves.

Despite this bearish pattern, Brandt remains neutral in his stance, stating that he does not hold a position in XRP. However, he outlined specific price levels that could either confirm or invalidate the bearish scenario.

Key Price Levels to Watch

Brandt stated that a drop below $1.90 would confirm the bearish trend and indicate further downside. He cautioned that if XRP falls below this critical level, he would not consider holding the asset.

On the other hand, Brandt noted that a breakout above $3 would negate the head and shoulders pattern and shift the market sentiment. If the token surpasses this level, it could regain its bullish momentum, given that both shoulders of the pattern were formed around the same price range. To achieve this, the asset would need to rally by approximately 28% from its current value.

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Additional Analyst Predictions

Brandt is not the only analyst raising concerns about XRP’s price trajectory. Ali Martinez recently pointed out that $2 is a crucial support level for the asset. According to his analysis, if XRP fails to hold this support, it could drop to $1.60 in the short term.

Another analyst, Crypto Patel, holds an even more bearish outlook, predicting that XRP may decline further before experiencing a strong recovery. Patel identified three support gaps within the following price ranges: $1.712 to $1.545, $1.00 to $0.9268, and $0.772 to $0.64. However, despite this short-term bearish projection, Patel suggested that XRP could eventually experience a significant bullish reversal, forecasting a potential surge to $5.

As traders monitor price movements closely, the coming weeks will be crucial in determining whether the bearish pattern plays out or if the asset can defy expectations and maintain its current levels.