XRP News Today: XRP Faces 20% Drop Risk as Brandt Spots Bearish Pattern

Veteran trader and renowned chartist Peter Brandt has identified a potential Head and Shoulders (H&S) formation on the weekly chart for XRP, which could signal a significant shift in the asset's trajectory. This development comes amidst heightened geopolitical tensions, which have cast a shadow of uncertainty over the cryptocurrency market.

XRP is currently trading around $2.03, following a sharp decline triggered by global unrest. The broader cryptocurrency market reacted to news of U.S. airstrikes on Iranian nuclear facilities, which further escalated the ongoing Iran-Israel conflict. This geopolitical turmoil sent shockwaves through digital assets, including XRP.

Brandt, known for his expertise in chart patterns, noted that XRP is currently holding just above a crucial neckline level. This level is pivotal in determining whether the market will turn decisively bearish. The recent price action has placed XRP at a technically sensitive point, with Brandt's analysis centering on an H&S formation that began to take shape in late 2024.

The left shoulder of the pattern appeared in December 2024, following XRP’s rally to $2.90 and its subsequent pullback. The head formed in January 2025 when the price surged to $3.40. The right shoulder developed in May as XRP climbed to $2.65. The neckline of the structure lies at $1.875, a level XRP is now hovering just above. Brandt disregards the sharp April 7 drop to $1.61, calling it an outlier caused by extreme volatility. Without this anomaly, the pattern remains cleaner and more symmetrical.

Brandt emphasized that the H&S pattern would only be validated if XRP closes a weekly candle below $1.80. Should this occur, it could pave the way for a deeper correction. Until then, the setup remains technically plausible but unconfirmed. Beyond chart patterns, broader technical indicators paint a picture of indecision. The 8-week and 18-week exponential moving averages have flattened and now run closely together, often a sign that momentum is fading.

The Average Directional Index (ADX), which measures trend strength, is currently at 16.41—well below the threshold that indicates a strong trend. Meanwhile, the Average True Range (ATR) has contracted to 0.486, signaling reduced volatility. When both momentum and volatility decline, the stage is often set for a sudden and decisive move in either direction.

While Brandt’s analysis introduces caution, some analysts remain optimistic. CryptoInsightsUK noted a significant liquidity build-up around the $1.87 mark and suggested that XRP could briefly dip below this level—possibly to $1.72—to shake out weak hands before rebounding. He also highlighted that liquidity pools exist above current prices, hinting that any upward breakout could trigger a sharp rally.

Similarly, analyst EGRAG Crypto took a more bullish stance. He pointed out that XRP recently retested a critical support zone—what he calls the “white box”—and held firm. According to him, this successful retest is a bullish signal. EGRAG outlined two possible paths for XRP: either continued correction or a bounce toward new highs. However, he warned that XRP needs to reclaim the $2.08 level soon to preserve its upward momentum. If not, the asset risks dropping to $1.90 or $1.77, with $1.47 acting as a last-resort support level if selling pressure intensifies.

XRP now stands at a crossroads, with technical patterns, key support levels, and geopolitical events all converging. Whether Brandt’s bearish projection plays out or XRP defies expectations remains to be seen. One thing is certain—this is a critical juncture that demands sharp analysis and a strategic approach. As Peter Brandt hinted, this isn’t a moment for guesswork. Only those with a deep understanding of market dynamics will be prepared for what comes next.