XRP Double Top Warning from Peter Brandt

XRP Double Top Warning from Peter Brandt

Renowned commodity trader Peter Brandt has raised concerns about XRP, suggesting it may have formed a double-top chart pattern that indicates a potential bearish trend. This pattern, characterized by two peaks, signals that buying pressure at high prices is fading. If confirmed, it could lead to a significant price drop for XRP.

Key Takeaways

Peter Brandt warns of a possible double-top pattern for XRP.
The double-top formation is represented visually like the letter "M."
XRP may be facing critical support levels, with the potential for further price declines.
If XRP's price breaks below the neckline, it confirms a bearish trend.
The possibility of a price rebound above $2.00 exists, which could invalidate the bearish pattern.

Potential Bearish Trend for XRP

Peter Brandt, a well-known trader in the commodities market, has issued a cautionary note regarding XRP, suggesting that the cryptocurrency may be forming a double-top pattern.

Understanding the Double Top Pattern

A double top pattern resembles the letter "M." It occurs when an asset's price rises to a peak, falls to a support level (known as the neckline), rises back to the same peak, and fails to exceed it. This formation indicates that demand at the high price level has dwindled, as the buyers could not elevate the price on the second attempt.

The pattern is deemed confirmed when the asset's price drops below the neckline. Brandt has indicated that XRP is currently at risk of either threatening or breaking below this critical support level.

Analyzing the Chart

On Brandt’s chart, the upper horizontal black line represents the “ceiling,” which XRP has reached twice — once in early to mid-2025 and once more recently. The failure to maintain trading above this level resulted in the formation of the two peaks typical in a double top.

The lower horizontal black line indicates the “floor” of the trading range, serving as a crucial threshold. The most significant variable on this chart is the current candle, which shows a red bar on the far right.

Price Violation and Trends

Technically, the price has "violated" the neckline. According to classic technical analysis, if XRP closes a weekly candle below this neckline, it would confirm the double top.

Notably, Brandt also marked a small downward-sloping trendline on the second peak. This suggests that sellers had begun to exert more pressure prior to a potential major downturn.

Price Predictions

Although Brandt did not specify a target price, the completion of a double top pattern can be used to make a calculated prediction. Should this pattern fully develop, XRP may retrace its value back to around 50 cents.

Conversely, if the price suddenly rises above $2.00 — a scenario known as a "bear trap" — Brandt, who has had a historically tense relationship with the XRP community, would concede that the bearish pattern has failed. For now, the data points toward a bearish outlook for XRP.