XRP Faces 55% Correction Risk If Price Drops Below $1.90
2min read Veteran trader Peter Brandt has cautioned about a potential significant price correction in XRP, the cryptocurrency linked to Ripple. Brandt, renowned for his market analysis, has forecasted that if XRP's price dips below $1.90, it could result in a 55% correction, driving the price down to around $1.07. This prediction is grounded in a bearish head and shoulders pattern that Brandt has observed in the market.
Brandt's analysis indicates that the current market structure for XRP is fragile. A drop below the crucial support level of $1.90 could initiate a substantial sell-off, leading to a sharp decline in value. This bearish perspective is bolstered by the formation of a head and shoulders pattern, a widely recognized technical indicator of a potential reversal in an asset's price trend.
However, Brandt also mentioned that if XRP can surge above $3, it could invalidate the bearish pattern. This would suggest a bullish reversal and potentially propel the price higher. The market's response to these levels will be pivotal in shaping the short-term trajectory of XRP.
Brandt's warnings come during a period of heightened volatility in the cryptocurrency market. Investors are closely observing key support and resistance levels, as these often dictate the direction of price movements. The possibility of a 55% correction underscores the risks involved in investing in cryptocurrencies, known for their price fluctuations and market unpredictability.
The cryptocurrency community is closely monitoring these developments, as Brandt's predictions have a history of influencing market sentiment. His analysis underscores the significance of technical indicators and market patterns in navigating the volatile landscape of digital assets. Investors are advised to remain cautious and consider the potential for substantial price movements as they make their investment decisions.
XRP has been experiencing a bearish trend since the beginning of 2025, with its price currently trading at $2.36, reflecting a 4.2% daily decrease. The token's weekly performance also shows a decline of 3.9%, and it is now trading 27.4% below its all-time high of $3.40. Despite these challenges, XRP has not yet tested the $1.90 support level, which has been tested three times recently. Since climbing above the $2 price point, XRP has not recorded a close under it, suggesting that investors view this price level as a buy-back zone, potentially preventing a further price crash.
The underwhelming performance of XRP since the start of 2025 poses a significant challenge. Some investors have lost interest, and the next few weeks will be crucial for XRP to establish a trend direction. Clear breaks of key levels will be essential in determining the future price action of XRP. The market's reaction to these levels will be closely watched, as they could provide insights into the short-term direction of XRP.
