XRP Faces 64% Drop Risk If $3 Resistance Holds

Veteran trader Peter Brandt has issued a critical update on XRP’s price trajectory, identifying key levels that could determine the cryptocurrency’s next major move. His latest analysis points to a classic complex head-and-shoulders pattern, a formation that often signals a potential trend reversal. Brandt’s chart suggests that if XRP fails to break past the $3 resistance level, the price could see a sharp decline toward $1.07. However, a sustained move above $3 could invalidate the bearish outlook and open the door for further upside.

Brandt, who joined the XRP army in late 2024, recently highlighted the significance of XRP’s price action. He pointed out that the cryptocurrency formed a complex head-and-shoulders top, with its peak occurring in January when XRP briefly touched $3.4. Since then, the price has struggled to reclaim the $3 level, facing repeated rejections. According to the analyst, the $3 mark is a crucial threshold. If XRP breaks above this level, it could indicate renewed bullish momentum. However, failure to do so could validate the head-and-shoulders pattern, increasing the probability of a downturn to the $1.07 support level.

Notably, another well-respected analyst recently pointed toward the same head-and-shoulders pattern, suggesting the asset may also invalidate it by maintaining its position above the neckline of the technical formation. A decline to $1.07 would represent a significant loss of value for XRP, cutting its market capitalization nearly in half. With the cryptocurrency valued at approximately $123 billion, such a drop would erase around $60 billion from its market cap. Falling to $63 billion would put the asset in seventh place, significantly lower than its current position as the fourth-largest cryptocurrency.

While Brandt has previously praised XRP, going as far as calling it the leader of the pack, the asset is currently in a crucial position and must reclaim that $3 level to stay strong in the market. The coming weeks will be crucial in determining whether XRP can regain its bullish momentum or if the head-and-shoulders pattern will play out as Brandt suggests. Investors and traders should closely monitor the $3 level, as a breakout or rejection could dictate XRP’s next major move.

Brandt's analysis highlights the critical importance of the $3 resistance level. If XRP can surpass this threshold, it could invalidate the bearish Head and Shoulders pattern, potentially leading to a more bullish outlook. However, if XRP fails to reclaim $3, the downside risk becomes substantial, with a potential drop to $1.07. This price level represents a significant decline from current levels, underscoring the importance of monitoring XRP's price action closely.

The Head and Shoulders pattern is a well-known technical indicator that often signals a reversal in price trends. In this case, the pattern suggests that XRP could be on the verge of a significant correction if it fails to break above the $3 resistance. Brandt's analysis serves as a cautionary tale for investors, emphasizing the need for vigilance and careful consideration of technical indicators when making investment decisions.

Brandt's bearish outlook contrasts with some other analysts who have predicted more bullish scenarios for XRP. For instance, some analysts have identified an Inverse Head and Shoulders pattern, suggesting that XRP could potentially rally to higher levels if it maintains support at key levels and breaks above major resistance. However, Brandt's analysis provides a more cautious perspective, highlighting the potential risks associated with investing in XRP.

In summary, Peter Brandt's analysis of XRP's price trajectory underscores the importance of monitoring key resistance levels and technical indicators. If XRP fails to break above $3, the risk of a significant correction to $1.07 becomes a real possibility. Investors should carefully consider these factors when making investment decisions, as the cryptocurrency market is known for its volatility and unpredictability.