After Forming a Head-and-Shoulders Pattern, XRP Risks a 55% Capitulation to Near $1

According to market veteran Peter Brandt, who believes a steeper drop is on the horizon, XRP is forming a head and shoulder pattern on the daily timeframe

The price of XRP could be heading towards $1, according to market veteran Peter Brandt, who spotted a classic technical pattern unfolding on the daily timeframe.

Brandt, a veteran trader with 50 years of experience, shared this price development in a Monday post. He suggested that despite XRP's recent bullish price actions, it risks a capitulation to near $1. This commentary comes on the back of XRP's consolidation around the $2.4 region. The high-caliber asset has failed to replicate the price uptrend seen in altcoins like Dogecoin and Shiba Inu, retracing nearly 2% today.

XRP might be ranging in a classic technical pattern, according to the seasoned trader. For the uninitiated, Brandt identified a bearish head-and-shoulder pattern on the daily timeframe. This structure is a bullish-to-bearish price reversal pattern that signals the end of an upward price action and the start of a downward trend.

According to his analysis, the left shoulder of the pattern formed with XRP's price surge to a December 3 high of $2.9070. Moreover, the structure's head formed at XRP's January 16 high of $3.3999, and the right shoulder with the asset's rapid surge to $3.0153 on March 2 following Donald Trump's announcement of XRP's inclusion in the US crypto reserve.

Notably, Brandt stressed that XRP is now range-bound, sharing the crucial levels that would confirm the capitulation or invalidate the pattern. "I have no bullish or bearish interest in this coin," he added.

For context, the seasoned market trader noted that a break below $1.9 would confirm the bearish structure. According to him, he would not want to own the asset at that level. Notably, XRP remains 21.4% away from the decisive price mark.

However, a break to $3 would invalidate the bearish price pattern. The level aligns with the price marks where both shoulders formed, and a surge past it would ultimately create a whole new paradigm. Interestingly, XRP would have to surge 24% from the current price to reclaim the over-three-week high.

Earlier this month, analyst Ali Martinez also highlighted $2 as the breakpoint for XRP, predicting a steep correction to $1.6 if support fails to hold.

Moreover, analyst Crypto Patel shares a short-term bearish disposition towards XRP, predicting a far worse correction. He identified that the asset has three support gaps to fill, which were between $1.712 and $1.545, $1.00 and $0.9268, and $0.772 and $0.64.

Nonetheless, Crypto Patel suggested a bullish reversal would follow suit, with a 681% surge to $5 as the subsequent line of action.

In the meantime, XRP trades at $2.4061, down nearly 2% in the past 24 hours.