Market analyst Peter Brandt has identified a 'head and shoulders' pattern in the XRP's price chart, traditionally signaling a bearish trend that may indicate an imminent decline in the coin's value.
XRP Struggles for Direction Amid Bearish Trend
Since March began, XRP hasn’t shown a clear upward or downward trend. The altcoin has experienced both price drops and occasional rises, but overall, it remains in a bearish trend. As noted by Brandt in his tweet, “This could become bullish if 3.0 is exceeded, otherwise the implications is a decline to 1.07.”
Brandt noted that the left shoulder of the pattern formed in December 2024 when XRP hit a $2.9 peak following an uptrend that started in November 2024. After Donald Trump's election, XRP rose from $0.5 in November to $2.9 in December before facing a price drop.
After more than a month of sideways movement, XRP bounced back, reaching a new seven-year high of $3.4 in mid-January 2025, marking the 'head' of the pattern. However, after hitting resistance at $3.4, XRP dropped. Following President Donald Trump’s announcement that XRP will be part of the U.S. crypto reserve, the coin rallied again, peaking at $3 on March 2, forming the 'right shoulder'.
Key Levels To Watch
With both shoulders and the head in place, the pattern's neckline is around $1.9 to $2. This level is crucial because it will decide whether the head and shoulders pattern holds or gets invalidated. According to Brandt's latest analysis, if XRP breaks above $3, the bearish outlook would no longer apply.
If the head and shoulders pattern holds true, Brandt predicts XRP could drop to $1.07, a level last seen in November 2024. Falling below $2 and into the $1 range would be a bearish sign for XRP.
Brandt previously warned that this drop could happen if XRP falls below the $1.9 support level. Right now, XRP is trading at $2.16, down 6.12% in the last 24 hours. A further 12% drop could push it to test the $1.9 support. Previous analysts suggest that XRP stays bullish as long as it holds above $2.
Economic Factors
Beyond technical charts, economic factors also impact XRP’s price. The upcoming 25% tariffs on car imports, starting April 3 under Trump’s policy, could raise manufacturing costs and fuel inflation.
Additionally, the CME FedWatch Tool estimates the chances of a rate cut in June at 55.7%, down from 67.3% last week. If the Fed keeps rates higher for longer, it can decrease liquidity in speculative markets, which may negatively impact risk assets such as XRP.
Peter Brandt has expressed concerns about potential declines in XRP, mainly due to the identified 'head and shoulders' pattern, along with economic factors. While the current positioning around $2.16 raises questions, past support at $2 offers some optimism. Economic conditions and future actions by the Federal Reserve will also play a critical role in XRP's price movement.
