Veteran market analyst Peter Brandt has spotted a troubling pattern in XRP's price chart—a head and shoulders top.

This pattern is known for signaling a major downturn, and Brandt warns that unless XRP makes a strong recovery, it could drop back to its lowest levels from November 2024.

Veteran market analyst Peter Brandt has spotted a troubling pattern in XRP's price chart—a head and shoulders top. This pattern is known for signaling a major downturn, and Brandt warns that unless XRP makes a strong recovery, it could drop back to its lowest levels from November 2024.

“[This] could become bullish if 3.0 is exceeded, otherwise the implications is a decline to 1.07,” Brandt stated.

After trading sideways for over a month, XRP bounced back and hit a seven-year high of $3.4 in mid-January 2025, forming the head of the pattern. However, it struggled to break above this level and eventually dropped along with the broader market.

A fresh rally followed when President Trump announced that XRP would be part of the U.S. crypto reserve. This pushed the price back up to $3 on March 2, forming the right shoulder of the pattern.

Now, the key level to watch is the neckline, which sits between $1.9 and $2. If XRP stays above this level, the pattern could be invalidated. But if it breaks below, a deeper decline might follow.

Brandt, who has been critical of XRP in the past, recently referred to it as a “pet rock.” Despite his bearish stance, he acknowledged that a break above $3 would shift the outlook in a bullish direction.

However, if the head and shoulders pattern plays out, it could see XRP drop to $1.07, a level last seen in November 2024.

Previously, Brandt warned that if XRP falls below $1.9, it could trigger a sharper decline. Right now, XRP is trading at $2.16, down 6.12% in the past 24 hours. If it drops another 12%, it will test the crucial $1.9 support level. Some analysts believe XRP will remain bullish as long as it stays above $2.

Beyond technical analysis, broader economic conditions could also influence XRP's price. The upcoming 25% tariffs on car imports, set to take effect on April 3 under Trump’s trade policies, could increase manufacturing costs and drive inflation higher.

At the same time, the CME FedWatch Tool shows that the chances of an interest rate cut in June have dropped to 55.7% from 67.3% last week. If the Federal Reserve keeps rates high for longer, liquidity in speculative markets could shrink, which may negatively impact assets like XRP.