Veteran crypto analyst Peter Brandt has identified a bearish technical formation in XRP’s price chart that could signal a significant downturn ahead. In a detailed analysis shared on X (formerly Twitter), Brandt points to a classic Head & Shoulders (H&S) pattern that suggests XRP may retrace to the $1.07 level – a potential 54% decline from current prices.
XRP’s Technical Setup: Breaking Down the Head & Shoulders Pattern
The formation developed between October 2024 and March 2025, with XRP showing the following key price movements:
- Left Shoulder: Formed near $2.90
- Head: Peak at $3.40 in mid-January
- Right Shoulder: Currently developing around $3.00
- Neckline: Critical support at $1.90
This technical structure aligns with recent XRP price analysis that highlighted key resistance levels, though offering a more bearish outlook.
Critical Price Levels to Watch
Traders should monitor two crucial price zones:
- Support: $1.90 (neckline) – A break below could trigger the projected decline
- Resistance: $2.90-$2.99 – Current ceiling where upward momentum has stalled
Technical Indicators Support Bearish Outlook
Additional technical metrics reinforce the bearish scenario:
- Moving Averages: 8-day and 18-day MAs converge at $2.44, indicating muted momentum
- ATR: 30-day reading at $0.205 shows compressed volatility
- Volume: Trading activity has declined during pattern formation
Expert Analysis and Price Targets
Brandt emphasizes his neutral stance, stating: “I have no vested interest up or down. XRP is forming a textbook H&S pattern.” He outlines key trading levels:
- Above $3.00: Not advisable to maintain short positions
- Below $1.90: Suggests avoiding long positions
- Target: $1.07 based on pattern measurement
FAQ: XRP Head & Shoulders Pattern
Q: What makes this H&S pattern significant?
A: The pattern’s clear formation and textbook measurements, combined with declining volume, increase its reliability as a bearish indicator.
Q: How long might the decline take?
A: H&S patterns typically play out over several weeks to months, suggesting a gradual rather than sudden decline.
Q: What could invalidate this bearish setup?
A: A decisive break above $3.00 with strong volume would likely invalidate the pattern and potentially trigger a short squeeze.
At press time, XRP trades at $2.35, maintaining a precarious position below key resistance levels as traders await confirmation of the pattern’s completion.