Veteran charlotist Peter Brandt has once again turned his attention to the XRP community after sharing a technical glitch indicating a bearish market structure on the weekly time frame for the cryptocurrency.
Brandt’s technical analysis focused mainly on the behavior of the charts rather than sentiment, warning that the current setup carries downside implications that traders cannot ignore and must deal with.
Peter Brandt mentions a potential double top
On social media platform X, Brandt highlighted what he described as a potential double top formation on XRP’s weekly chart. He acknowledged upfront that the pattern could still fail, but emphasized that the structure, as things stand, is bearish.
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The analysis is based on the recent price action of XRP, which has lost the $2 price level after days of consistent bearish price action in December. Brandt described the setup as a matter of accepting what the chart shows rather than arguing against it, bluntly stating that market participants should deal with the implications rather than dismiss them.
His comments were also addressed to die-hard XRP optimists, making it clear that his position is not driven by prejudice against the asset, but by an adherence to classic charting principles. Until price action disproves the pattern, the risk profile is skewed to the downside and could continue to push XRP lower in the near term. “Whether you like it or not, you have to deal with it,” Brandt said.
The chart accompanying Brandt’s post shows that XRP fell below the support of a flag pattern a few months ago. This breakdown has continued up to the lower limit around $1.80 to $2.00, which has acted as a key support pair against resistance around $3.5.
This level of support has already functioned as a critical support region twice this year. However, it appears that XRP could now lose this level on the third prompt. The weekly moving averages on the chart also appear to be leveling off, a sign that the upside has weakened compared to earlier phases of the cycle.
What would change the bearish outlook?
A double top pattern is a bearish reversal signal, meaning an uptrend is likely to end and a downtrend is beginning. Despite his firm tone, however, Brandt noted cautiously that the pattern is conditionalnot absolute. “This is a potential double top. Of course it could fail, and if it does, I will address it,” he said.
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A sustained move back above the $2 support would delay any breakdown into the $1 range. A further sustained recovery from highs around $2.2, $2.5, $2.7 and $3 would invalidate the double top and force a reassessment of the broader trend. Until this happens, however, Brandt’s technical structure remains in favor of caution XRP proponents might disagree.
Featured image from Adobe Stock, chart from Tradingview.com