Veteran Trader’s Dire Warning: XRP’s Textbook Crash Pattern Emerges

Veteran market analyst Peter Brandt has issued a stark warning about XRP, identifying a classic Head & Shoulders (H&S) pattern on the daily chart. This ominous technical formation suggests a potential price plummet towards the $1.07 mark.

Brandt’s analysis, shared on X, utilizes XRP/USDT daily data from Binance, spanning mid-October to late March. The chart reveals a dramatic rise from below $0.50 in late October to above $1.00 in mid-November. Following a bull flag, XRP rallied aggressively, peaking near $2.90 in early December and reaching a high of $3.40 in mid-January.

Currently, the 8-day (C,8) and 18-day (C,18) moving averages hover around $2.44, where XRP is trading. This convergence indicates weakening momentum.

XRP’s Critical Support and Resistance Levels

Two key horizontal levels define XRP’s current trading range: the $1.90 support level (also the neckline of the H&S pattern) and the $2.90-$2.99 resistance band. A break below $1.90 would be highly bearish for long positions, while a decisive move above $3.00 could trigger short-covering rallies.

The H&S pattern itself is formed by a left shoulder near $2.90, a higher peak (the ‘head’) at $3.40, and a right shoulder around $3.00. The neckline sits at approximately $1.90. A breakdown below this neckline with significant volume would confirm the pattern, with Brandt’s measured move target pointing to a potential drop to approximately $1.07.

Volatility and Moving Averages

Brandt highlights the convergence of the 8-day and 18-day moving averages around $2.44, along with a compressed 30-day Average True Range (ATR) near $0.205. While recent price swings have been less dramatic than during XRP’s previous ascent, a break above $3.00 or below $1.90 could reignite significant volatility.

Brandt emphasizes his impartiality, stating he holds no position in XRP and is simply presenting a concerning technical pattern. He warns that while above $3.00 he would not want to be short and below $1.90 he would not want to own it.

At press time, XRP traded at $2.35. (Featured image created with DALL-E; chart from TradingView.com)