XRP Risks Double-Top Crash Toward $0.40, Peter Brandt Warns

Overview

Veteran chartist Peter Brandt has identified a potential double top pattern on XRP’s weekly chart, a classic setup that suggests a reversal in price trends. This observation raises concerns about XRP’s future performance, especially as it trades below a crucial support level. The analysis presents a tension between bearish implications and the possibility of a market bottom.

Peter Brandt’s Analysis

Brandt shared his observations on the XRP-USDT weekly chart, highlighting two peaks clustered around $3.40 and $3.66, with significant support established near $2.00. He characterized this scenario as a potential double top, indicating that if the support level at $2.00 is lost, XRP could transition from a “pullback inside a range” to a “failed structure.” Brandt’s assertion underscores the importance of the price action between the two peaks, particularly the midpoint low.

With XRP currently trading below the $2.00 support line, specifically around $1.8859, the focus shifts to whether the market will experience a sustained weekly close below this level. If this occurs, it would signal a confirmed breakdown, while a quick reversal could indicate a bear trap, maintaining the bullish thesis.

Diverging Perspectives

While Brandt’s analysis leans towards a bearish outlook, not all traders share this sentiment. Trader Cryptollica pointed out a separate XRP/USD weekly chart, noting that the weekly Relative Strength Index (RSI) was approximately 33. Historically, similar low RSI readings have coincided with market bottoms for XRP. This observation introduces a counter-narrative to Brandt’s bearish perspective.

Brandt acknowledged this conditional logic, suggesting that if the double top fails, the situation could become more favorable for XRP. He emphasized that his analysis was not a definitive bearish stance but rather an objective observation of the chart’s structure.

Chart Dynamics and Implications

The conversation surrounding XRP’s price dynamics highlights the tension between momentum indicators like the RSI and price structure breakdowns. While the RSI may signal oversold conditions, it does not inherently negate the implications of a price breakdown. Brandt refrained from providing a specific price target but noted that the potential measured move from the double top pattern could imply a price target around $0.40 if the setup fully materializes.

The immediate concern remains whether XRP can decisively reclaim the $2.00 area, which would shift the narrative from a potential double top to a confirmed break. If XRP fails to recover, traders may recalibrate their positioning models based on the bearish implications of the chart.

From author

The current discussion around XRP’s price action illustrates the complexities of technical analysis in cryptocurrency markets. Traders must navigate the interplay between various indicators and patterns, making informed decisions based on the evolving market landscape. Brandt’s insights serve as a reminder that while historical patterns can provide guidance, market behavior is ultimately unpredictable.

Impact on the crypto market

• A confirmed breakdown below the $2.00 support level could trigger increased selling pressure on XRP.
• The potential for a bear trap may attract speculative buying if XRP quickly reclaims the $2.00 area.
• Diverging analyses among traders highlight the uncertainty and volatility inherent in the cryptocurrency market.
• Historical RSI readings suggest that traders may be cautious, as low RSI levels can indicate potential reversal points.
• The outcome of this situation could influence sentiment across other altcoins, as XRP often serves as a bellwether for the market.