XRP Head and Shoulders Pattern Signals Bearish Risk

XRP is showing signs of a potential bearish shift, according to seasoned trader Peter Brandt, who recently highlighted a possible Head and Shoulders pattern developing on the weekly chart of the popular cryptocurrency.

The digital asset currently sits at a crucial level, trading around $2.03. This follows a broader market downturn that was largely influenced by geopolitical tensions, particularly U.S.-led airstrikes on several nuclear sites in Iran, which reignited hostilities between Iran and Israel and sent ripple effects across global financial markets, including crypto.

In his chart analysis, shared publicly on social media, Brandt pointed to the potential emergence of a Head and Shoulders (H&S) formation on XRP’s one-week time frame. This pattern is often considered a precursor to a bearish reversal, especially in a strongly trending market.

Brandt excluded an earlier dip to $1.61 on April 7, attributing it to extreme market volatility rather than treating it as part of the overall structure. When disregarded, the pattern appears cleaner and more traditionally structured.

The formation began taking shape in December 2024, when XRP climbed to $2.90 before pulling back, forming the left shoulder. A subsequent surge in January 2025 propelled XRP to $3.40, establishing the head. The right shoulder was carved out in May 2025 when the price reached $2.65. The neckline, a critical component of the H&S formation, is situated horizontally at approximately $1.875 — slightly below current price levels.

Even though XRP remains above this neckline for now, Brandt cautions that a weekly close below $1.80 could validate the bearish pattern and potentially lead to a steeper decline. However, until such a close is confirmed, the pattern remains speculative and does not guarantee a breakdown.

Supporting this outlook, several technical indicators highlight a market in limbo. The 8-week and 18-week exponential moving averages (EMAs) have flattened and are converging — a sign of fading directional momentum. Furthermore, the Average Directional Index (ADX), which gauges the strength of a trend, currently reads 16.41, far below the benchmark for a strong trend. Meanwhile, the Average True Range (ATR), a measure of price volatility, stands at 0.486, suggesting market movement has tightened — typically a warning that a major price move could follow.

Despite the potential downsides, some market analysts maintain a more optimistic view. CryptoInsightsUK, a well-known trader, recently observed growing liquidity near the $1.87 price level. According to him, XRP might briefly dip below the neckline to eliminate weaker positions before rebounding. He viewed the $1.72 zone as a strong buying opportunity and encouraged traders to monitor liquidity pockets sitting above current price bands — a scenario that could result in a swift upward movement if momentum picks up.

In a related update, The Crypto Basic previously reported on remarks from analyst EGRAG, who noted that XRP recently accomplished a successful retest of a crucial support zone — a region he refers to as the “white box.” He interpreted this as a bullish signal and outlined two potential pathways for the token: either continuing to correct toward lower support levels or rebounding with enough strength to challenge recent highs.

EGRAG emphasized the significance of the $2.08 mark. If XRP cannot recover this level soon, downside targets of $1.90 and $1.77 come into play. Should bearish sentiment continue to dominate, he foresees $1.47 as the next meaningful support.

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

With both bullish and bearish narratives unfolding, traders and investors are closely watching XRP’s weekly close near its neckline. Whether the market confirms the traditional H&S pattern or invalidates it with renewed bullish movement remains a critical question for the coming weeks.