XRP Teeters on Edge as Peter Brandt Warns Head and Shoulders Pattern Could Trigger Breakdown

XRP maintained a strong footing on Tuesday, stabilizing above the $2.00 mark after rebounding on Monday from a weekend sell-off triggered by heightened geopolitical tensions in the Middle East. The bounce has temporarily relieved, but uncertainty lingers as traders digest new technical warnings. Veteran trader Peter Brandt reignited concern this week after reaffirming that XRP’s price structure reflects a potential head and shoulders pattern, a formation typically associated with bearish reversals. In a tweet, Brandt noted that the April 7 plunge to $1.61 should be viewed as an “out-of-line movement,” not part of the main pattern. Removing that anomaly, he argued, reveals a more straightforward technical setup pointing to a possible top formation. Despite the warning, Brandt emphasized, “This chart need NOT be interpreted as bearish. Price is at support right now.” According to his analysis, the pattern’s neckline lies around $1.875. A sustained break below this level, especially on a weekly close, would be required to confirm the pattern and could signal the start of a deeper decline. Notably, the suspected formation began taking shape in late 2024. The left shoulder formed near $2.90 in December, the head rose to nearly $3.40 in January, and the right shoulder appeared around $2.65 in May. Since then, XRP has largely respected the neckline zone. However, Brandt added that he would only reassess the structure “if price closes below 1.8xxxx,” implying that a decisive breakdown would need a significant confirmation. While Brandt focuses on charts, external forces have not been ignored. The sharp April 7 decline occurred just hours after U.S. airstrikes in Iran sent shockwaves through financial markets, likely explaining the outlier dip he referenced. Beyond Brandt’s view, the broader analyst community remains divided. Analyst at CryptoInsightsUK identified increased liquidity around the $1.87 mark, even suggesting it might present a “blessing entry” if XRP dips further toward $1.72. Elsewhere, technical analyst Cryptoes_ta told followers that XRP’s current price structure resembles its December 2024 breakout, describing it as a setup that could push the asset beyond its all-time high of $3.84 and into the $7 to $10 range. That said, for now, XRP’s technical momentum remains subdued. As measured by the Average Directional Index, trend strength sits at 16.41, suggesting a weak directional move. Meanwhile, the Average True Range has dropped to 0.486, a signal of suppressed volatility often preceding abrupt market shifts. On the relative strength front, XRP’s weekly RSI stands at 32, approaching levels traditionally associated with oversold conditions. At press time, XRP traded at $2.18, reflecting a 1.6% surge in the past 24 hours.

Source: ZyCrypto