XRP is under renewed selling pressure following the social media commentary by experienced analyst Peter Brandt.
Brandt referenced a “head and shoulders” formation on the chart, indicating that prices might retract to the $1.07 level in the short term. This warning comes despite the currency experiencing a 5% rise over the past month, sending significant ripples through investor confidence. Market players are now questioning whether the formation will be fulfilled and how swiftly the critical threshold will be tested.
Head and Shoulders Formation Signals Downtrend for XRP
According to Brandt, if the neckline breaks, the classic target for downward movement stands at $1.07. This formation is often an indicator of trend reversals in traditional markets; cryptocurrency charts are no exception. The loss of momentum in the recent rally and signs of weakening in volume profile reinforce the analyst’s prediction through technical data. Additionally, momentum indicators like RSI and MACD have started retreating from peak levels, offering further warnings of potential sellers’ dominance.
Investors consider that closing below $1.07 could pave the way for a more extensive correction. In this scenario, the first support level lies around $0.98; falling below this area could entirely shelve mid-term bullish expectations. Conversely, sustained movements above the neckline could invalidate the formation, infusing new energy into the buyers’ side. Essentially, the chart will make the critical decision, keeping volatility high in the coming days.
Divergent Predictions Fuel Market Uncertainty
Brandt’s pessimistic stance starkly contrasts with recent predictions that “XRP could reach $27.” A section of the market remains optimistic that increasing regulatory clarity and potential significant partnerships could lift prices. However, these conflicting projections complicate decision-making processes, especially for short-term investors. In the short term, technical aspects, and in the mid-term, fundamental dynamics take precedence; this dual tension maintains price volatility.
On-chain data indicates that large wallets have been reducing positions in recent weeks, suggesting declining liquidity, which increases the risk of an intensifying sell-off. Despite this, institutional interest in the event of pullbacks could see funds viewing these moments as opportunities. Investors prefer to manage risks by diversifying scenarios rather than relying on a single prediction, allowing them to consider both Brandt’s warning and alternative bullish scenarios in their planning.
