Veteran trader Peter Brandt warns that XRP could drop to $1.07, citing the typical head and shoulders pattern forming as the price hits a critical support level near $1.90.

Peter Brandt Identifies Classic Reversal in XRP as Tensions Rise at Key Levels

Veteran trader Peter Brandt updated his analysis on XRP on Wednesday, outlining a bearish outlook based on classic chart patterns. Brandt noted that the cryptocurrency token is currently locked in a trading range and forming a head and shoulders (H&S) pattern, a formation that can be interpreted as a sign of an impending downward move. Sharing his observations on the social media platform X, he declared:

XRP is forming a textbook H&S pattern. Therefore, we are currently constrained within a range.

The H&S pattern, known for its three-peak structure, is widely regarded in technical analysis as a reversal indicator signaling a shift from upward momentum to downward momentum when a critical support level or "neckline" is broken.

Theo Brandt, the neckline is close to $1.90—a level that XRP must hold to avoid deeper losses. If that support is broken, the forecast pattern will move towards $1.07. He defined the current area of interest by stating:

Above 3.000, I don’t want to short it. Below 1.9, I don’t want to own it. The H&S forecast is 1.07.

Brandt's chart shows XRP fluctuating between resistance at $2.9990 and support at $1.9000, with the most recent price seen around $2.45. The expected drop is $1.0714, marked on the chart, representing the technical target stemming from the height of the head and shoulders structure. Brandt, anticipating criticism from the XRP online community, stated: "Don’t shoot the messenger." He further explained: "I have no inherent interest in either direction."

Despite frequent backlash from XRP supporters, Brandt maintains a measured perspective based on data about the cryptocurrency. His focus is on price action rather than sentiment or the fundamental factors of the token. Reflecting his neutral stance, Brandt previously stated on X: “To be clear: I don't care what XRP does. If it goes up, I want to buy long-term. If it goes down, I have never shorted it.”

Meanwhile, recent developments have shifted to a bullish trend for XRP as Ripple settles its lawsuit with the U.S. Securities and Exchange Commission (SEC) for a reduced penalty of $50 million, clearing a major legal cloud. Institutional interest is rising, highlighted by 21Shares' recent listing of an XRP ETP on Nasdaq Stockholm and Ripple CEO Brad Garlinghouse expressing confidence in a future U.S. XRP ETF. Contributing to this momentum, President Donald Trump named XRP as one of the cryptocurrency assets included in the U.S. strategic cryptocurrency reserve, signaling increasing support from political and institutional sectors.