XRP Faces Potential Double-Top Risk, Warnings from Peter Brandt

Peter Brandt, a veteran chart analyst, has highlighted a concerning potential "double top" pattern on XRP's weekly chart. This classic chart formation, if validated, suggests the cryptocurrency could face lower prices. Despite this, some analysts point to an oversold weekly RSI as a possible indicator of a market bottom.

Key Takeaways

Peter Brandt warns of a “potential double top” on XRP's weekly chart which could indicate lower prices.
The trading range includes two peaks around $3.40 and $3.66, with key support identified near $2.00.
An oversold weekly RSI reading near 33 has historically marked market bottom zones.
Confirmation of a double top could lead to a price target around $0.40 if the bearish trend continues.
The immediate focus is whether XRP can regain the $2.00 support level.

XRP price news

Understanding the XRP Double-Top Pattern

On December 17, Peter Brandt shared his concerns about XRP on social media, presenting a chart that illustrates what he describes as a "potential double top." He explained his stance bluntly, acknowledging that some XRP enthusiasts might criticize his view but emphasizing the bearish implications of the pattern.

The chart depicts XRP trading against USDT on Binance, showing two significant peaks near $3.40 and $3.66, alongside a crucial support level around $2.00. In traditional chart analysis, this $2.00 level acts as a neckline; if XRP closes below this area, it would signal a shift from a "pullback inside a range" to a "failed structure."

This distinction is critical because the validity of a double top pattern is ultimately defined by the price action at the midpoint between the two peaks. As Brandt notes, the situation remains “potential” until either the support holds and prices rise, or the neckline breaks, leading to lower valuations.

Currently, XRP is trading below $2.00, with the latest price around $1.8859. This situation raises the question of whether this breakdown will result in a sustained weekly close below support, signaling a bearish trend, or if it will reverse, indicating a possible bear trap.

XRP double top pattern

Is XRP Reaching Its Bottom?

Not all analysts are adopting a bearish outlook on XRP. Trader Cryptollica shared an alternative perspective on December 15, showing an XRP/USD weekly chart from Bitstamp with an RSI reading around 33. This level has historically indicated market bottoms in past declines.

XRP weekly RSI

Brandt acknowledged the merits of this argument, noting that a failed double top could shift from bearish to bullish if support holds. He stated, “If this double top fails, then this could become exciting. I agree. I'm merely presenting the charts as they are, without promoting a bear stance.”

This exchange illustrates the existing tension among traders. While momentum indicators like RSI can highlight stretched conditions and past performance, they do not inherently negate a breakdown in price structure.

Brandt did not outline a specific price target, but his analysis provides enough detail for technicians to infer that the pattern could potentially lead to a target around $0.40, based on the peak heights and neckline distance if the formation plays out fully. However, this is not a guarantee that the market will behave accordingly; it's merely a result of basic chart calculations.

The pressing concern remains whether XRP can decisively reclaim the $2.00 support level. If this recovery fails, the narrative will shift from a “potential double top” to a “confirmed breakdown,” changing the trading landscape significantly.

At the time of writing, XRP was priced at $1.83.

XRP price chart