Analysis by Peter Brandt Signals Bearish Trends for XRP: “You Need To Deal With It”

Summary: Veteran chartist Peter Brandt has indicated a bearish outlook for XRP, highlighting a potential double top pattern on the weekly chart. He emphasizes the need for traders to confront the implications of this technical analysis, which suggests further price declines could occur if the bearish trend continues.

Key Takeaways

Peter Brandt has identified a potentially bearish double top formation in XRP’s weekly price chart.
The cryptocurrency recently fell below the critical $2 support level, maintaining a bearish trend.
Although Brandt acknowledges that the double top could fail, he stresses the importance of considering the current market structure.
A return above the $2 support level could alter this outlook, but for now, caution is advised for XRP investors.

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Peter Brandt Highlights Bearish XRP Price Structure

Veteran chart analyst Peter Brandt has shifted his attention back to the XRP community by sharing his insights into a troubling technical breakdown reflecting bearish momentum on the cryptocurrency’s weekly chart. Brandt focuses on chart behaviors instead of market sentiment, warning that the current trend presents downward risks that traders should take seriously.

Brandt Points to a Possible Double Top

On the social media platform X, Brandt brought attention to what he believes could be a potential double top forming on XRP’s weekly chart. He admitted that this pattern might not materialize but emphasized that, as it stands, the chart leans towards a bearish interpretation.

Brandt's analysis derives from XRP's recent price movements, which saw it drop below the $2 mark following several days characterized by bearish price action throughout December. He urged market participants to accept the trends shown on the chart, rather than dismissing them, reiterating that traders need to confront the implications of these patterns. His message mainly targets long-time XRP supporters, clarifying that his technical stance is not grounded in negativity toward XRP but in respect for traditional charting principles. Until the price action contradicts this pattern, the outlook leans towards further declines. As Brandt succinctly put it, “Love it or not — you need to deal with it.”

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Source: Chart from Peter Brandt on X

The chart featured in Brandt’s post illustrates XRP's decline below the support of a flag pattern established a few months back. This breakdown has led to prices settling near the lower boundary, around $1.80 to $2.00, which serves as significant support against a resistance level of about $3.5. This critical support has held firm twice this year, but it appears XRP may be on the verge of breaking through for a third time. Additionally, the weekly moving averages displayed on the chart suggest that upward strength is diminishing compared to earlier cycles.

Factors That Could Shift the Bearish View

A double top pattern is known as a bearish reversal signal, indicating that an existing uptrend may be ending, potentially marking the beginning of a downtrend. Despite taking a strong stance, Brandt highlighted that this pattern is not set in stone. "This is a potential double top. Sure, it may fail, and I will deal with this if it does,” he commented.

A persistent move above the $2 support level would delay any further decline toward the $1 area. Achieving and holding above previous highs around $2.2, $2.5, $2.7, and $3 would invalidate the double top scenario and necessitate a reevaluation of the overall trend. However, until that occurs, Brandt's technical outlook continues to suggest a prudent approach—one that may not resonate with all XRP supporters.

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XRP trading at $1.86 on the 1D chart | Source: XRPUSDT on Tradingview.com