XRP’s current market performance is raising eyebrows as it continues to lag behind other cryptocurrencies, despite Bitcoin’s impressive rally to $88,800. This analysis unpacks the risks associated with a potential bearish trading pattern highlighted by market experts.
Over the past week, XRP has seen a 4.7% decline, following an earlier 11% increase attributed to positive news regarding Ripple’s legal challenges with the SEC. Moreover, trading volumes have plummeted from roughly $4 billion to $2.6 billion, representing a 35% reduction in activity. This decline has set the stage for what some analysts warn could lead to a steep correction.
Veteran trader Peter Brandt has brought attention to a possible head-and-shoulders (H&S) pattern forming in XRP’s price movements. He projects that if XRP’s price slides below the critical $1.90 mark, the altcoin could be on track for a staggering 55% correction, potentially plunging to as low as $1.07. Brandt cautions,
“Below $1.90, I would not want to own it. H&S projects to $1.07. Don’t shoot the messenger.”
On the flip side, trader Javon Marks has pointed to an emerging positive breakout, noting that both XRP’s price and its relative strength index (RSI) have recently risen above their falling wedge patterns. Such a scenario historically suggests a potential turnaround for the altcoin. Marks asserts,
“The last breakout resulted in a roughly +570% price increase, and prices can be ready for another substantial surge.”
Despite warnings of possible downward momentum, analysts argue that declaring a retest of the $1.07 level might be premature given XRP’s existing market structure. Notably, while XRP has faced a downtrend throughout 2025, the $1.90 level has only been breached three times since November 2024, indicating a potential buyback zone for investors.
Spot market volumes are also noteworthy, exhibiting increased investor interest in XRP even amid recent fluctuation. According to order flow markets analyst Dom, the upcoming weeks will be pivotal for XRP to solidify its market direction. He emphasizes the necessity of seeing clear breaks of key levels to gauge future price action and advises caution as traders navigate this volatile landscape.
“We need to see clear breaks of the levels I have shown. Just be aware of the next week or two, as the price action will be telling.”
Ultimately, reclaiming the $2.50 mark remains crucial for XRP, as it has consistently served as a significant support and resistance level over the past several months. Investors should closely monitor these developments, as they may dictate XRP’s trajectory in the near future.
