Leading cryptocurrency analyst Peter Brandt has identified a bearish head-and-shoulders pattern in XRP’s price action, suggesting a potential decline below the critical $2 support level. This technical analysis comes amid increased market volatility and growing concerns about XRP’s short-term trajectory.
As recent price movements have shown, XRP has been experiencing significant pressure near its support levels, with technical indicators pointing to possible bearish momentum.
Technical Analysis Reveals Bearish Pattern
According to Brandt’s analysis shared on X (formerly Twitter), XRP is displaying a textbook head-and-shoulders formation, typically considered a bearish reversal pattern. The pattern projects a potential price decline to $1.07, representing a significant drop from current levels.
Key Support Levels to Watch
Multiple analysts have weighed in on crucial support levels:
- $2.25 – Current immediate support
- $1.90 – Secondary support level
- $1.54 – Potential breakdown target identified by CasiTrades
- $1.07 – Ultimate bearish target according to Brandt
Bullish Scenario and Invalidation Points
Despite the bearish outlook, analyst Ali Martinez suggests that a break above $3 would invalidate the head-and-shoulders pattern, potentially triggering a bullish reversal. Additionally, Dark Defender maintains an optimistic long-term view, projecting potential targets as high as $23.20 through wave analysis.
FAQ Section
What is a head-and-shoulders pattern?
A head-and-shoulders pattern is a technical chart formation consisting of three peaks, with the middle peak (head) being higher than the two outer peaks (shoulders). It’s typically considered a bearish reversal pattern.
What could invalidate the bearish scenario?
A decisive break above $3 would invalidate the bearish pattern and could trigger a bullish reversal.
What’s the current XRP price?
XRP is currently trading at $2.25, showing a 4% decline in the last 24 hours according to CoinMarketCap data.