XRP is forming a head and shoulder pattern on the daily timeframe, according to market veteran Peter Brandt, who believes a steeper drop is on the horizon.
Peter Brandt, a veteran trader with 50 years of experience, shared this price development in a tweet today. He suggested that despite XRP’s recent bullish price actions, it risks a capitulation to near $1.
The commentary comes on the back of XRP’s consolidation around the $2.4 region. The high-caliber asset has failed to replicate the price uptrend seen in altcoins like Dogecoin and Shiba Inu, retracing nearly 2% today.
XRP Risk 55% Correction to $1.07
Brandt noted in today’s commentary that a bearish head-and-shoulder pattern is emerging on XRP’s daily timeframe. For the uninitiated, this structure is a bullish-to-bearish price reversal pattern that signals the end of an upward price action and the start of a downward trend.
The veteran trader identified the left shoulder formation with XRP’s price surge to a December 3 high of $2.9070. Furthermore, the structure’s head formed at XRP’s January 16 high of $3.3999, and the right shoulder with the asset’s rapid surge to $3.0153 on March 2 following Donald Trump’s announcement of XRP’s inclusion in the US crypto reserve.
Notably, Brandt stressed that XRP is now range-bound, sharing the crucial levels that would confirm the capitulation or invalidate the pattern. He also maintained neutrality, insisting he has no bullish or bearish interest in the coin.
Crucial Levels to Watch
For context, the seasoned market trader noted that a break below $1.9 would confirm the bearish structure. According to him, he would not want to own the asset at that level. Notably, XRP remains 21.4% away from the decisive price mark.
However, a break to $3 would invalidate the bearish price pattern. The level aligns with the price marks where both shoulders formed, and a surge past it would ultimately create a whole new paradigm. Interestingly, XRP would have to surge 24% from the current price to reclaim the over-three-week high.
Meanwhile, analyst Ali Martinez made a similar price call weeks ago. In the price commentary, the prominent market watcher highlighted $2 as the breakpoint for XRP and predicted a steep correction to $1.6 if support fails to hold.
Furthermore, analyst Crypto Patel also shares a short-term bearish disposition towards XRP, predicting a far worse correction. He identified that the asset has three support gaps to fill, which were between $1.712 and $1.545, $1.00 and $0.9268, and $0.772 and $0.64.
Nonetheless, Crypto Patel suggested a bullish reversal would follow suit, with a 681% surge to $5 as the subsequent line of action. In the meantime, XRP trades at $2.4061, down nearly 2% in the past 24 hours.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
