XRP Faces Crucial Test Amid Warning from Peter Brandt

XRP is once again in the spotlight as renowned market analyst Peter Brandt draws attention to a troubling chart formation within the cryptocurrency’s recent performance. The focus keyword here is XRP, which has captured the attention of both bullish and bearish traders following Brandt’s latest technical forecast.

Brandt, well-known for his decades-long career in market charting, highlighted a classic technical pattern forming on XRP’s weekly chart: a potential head and shoulders (H&S) top. While this may seem routine to some, such a pattern is often associated with significant downside implications if confirmed.

According to Brandt, the critical area to watch lies near the $1.99 mark, which currently serves as the key support aligned with the neckline of the H&S structure. He emphasized the need to closely monitor whether XRP maintains this level or closes the week below $1.87 — a move that could confirm the bearish pattern and potentially trigger further downward movement.

At present, XRP is consolidating tightly just under $2.00, indicating uncertainty among traders. If the H&S pattern holds, it would suggest that the strong rally seen in late 2024 could be nearing its end, possibly giving way to a broader corrective phase.

The rally in question saw Ripple’s token break free from a prolonged wedge formation, leading to a rapid price increase that topped out around $3.20. In the months since, XRP has settled into what is known as a high-tight flag formation — a period of restricted movement that could resolve in either direction.

Technical readings further compound the cautious outlook. The average true range (ATR), a key measure of market volatility, has dipped to 0.4860 — a signal that a significant price move may be on the horizon. Simultaneously, the Average Directional Index (ADX), which measures trend strength, currently hovers near 16.41, indicating fading momentum in the current trend.

This period of reduced volatility often precedes sharp market shifts. Traders will be watching for any break above or below this consolidation to determine the next phase in XRP’s trajectory. The figure attracting the most attention now is that $1.87 support level, positioned as the line between potential recovery or correction.

If XRP breaches the neckline support at $1.87, it may confirm Brandt’s bearish scenario and ignite a wave of selling pressure. On the flip side, defending this level could encourage bulls to regather strength and push toward reclaiming recent highs. Everyone from swing traders to long-term investors is paying close attention, as the implications extend well beyond short-term speculation.

Brandt’s analysis has become particularly influential within the crypto sphere, frequently moving markets due to his reputation for identifying historically accurate technical patterns. This latest warning has added tension to the already delicate XRP landscape, creating a scenario where upcoming weekly closes could drastically influence market direction.

Related: Expert Advice: Sell XRP If You’re Confused

In summary, XRP is teetering at a pivotal point with strong technical resistance and shaky support levels. The market’s next move hinges on whether it can hold above the critical $1.87 threshold. As volatility compresses and trader sentiment turns cautious, XRP finds itself under the microscope of analysts and investors alike. Whether this is merely a pause or the start of a deeper decline remains to be seen, but one thing is certain — all eyes are now on what happens next with Ripple’s flagship token.