XRP Faces 44% Drop Risk, Bitcoin May Fall Below $70,000, S&P 500 in 18% Correction

Legendary trader Peter Brandt has issued a warning about the payments altcoin XRP, stating that it is at risk of experiencing a significant drawdown. Brandt, who has a substantial following on the social media platform X, pointed out that XRP is forming a head-and-shoulders (H&S) pattern on the daily chart. This pattern is typically bearish, indicating that the asset has lost momentum to sustain its uptrend after failing to reach new highs. According to Brandt, if XRP does not climb above a key resistance level, it could break support at $1.90 and potentially witness a substantial decline. He cautioned that if XRP fails to exceed $3.00, it could drop to $1.07, referencing the classic technical analysis work by Magee and Edwards.

Brandt's analysis extends beyond XRP. He also warned that Bitcoin (BTC) has broken down from a bearish continuation pattern after losing $85,000 and is now likely headed below $70,000. He noted that a bear wedge pattern has been completed, with a 2x target from the double top at $65,635. This suggests a further decline in the price of Bitcoin.

In addition to his cryptocurrency analysis, Brandt commented on the S&P 500, stating that the stock market index is now in an "established downtrend" after flipping the 5,864 support level into resistance. He predicted that the 2x target of 5,170 is a very appropriate 18% correction from the high, indicating a significant downward trend for the index.