Despite recent positive developments, XRP continues to face strong bearish pressure. Over the past week, the fourth-largest cryptocurrency by market capitalization has declined approximately 4.12%.
This weakness persists even after Ripple secured a major victory against the U.S. Securities and Exchange Commission (SEC), which dropped its long-running lawsuit against the company last week. A subsequent settlement finalized on Tuesday also failed to move XRP’s price significantly, as investors remained cautious and avoided trading on the news.
Veteran trader Peter Brandt has issued a stark warning for XRP holders, pointing to a potential 55% decline if a head should pattern unfolding on the daily chart is validated.
“XRP is forming a textbook H&S pattern. So, we are now range-bound. Above $3.00, I would not want to be short. Below $1.90, I would not want to own it. H&S projects to $1.07. Don’t shoot the messenger,” he wrote.
Analysts like MartyParty echoed this sentiment, also pointing to the pattern tweeting, “XRP Head and Shoulders maturing. Technical 50% pullback is around $1.60.”
However, not all analysts agree that the H&S pattern will confirm a downturn, meaning that a reversal is still possible. Technical analysts have highlighted the key point that an H&S pattern is not confirmed unless there is a daily close below the neckline at “$1.90,” which has yet to occur.
One analyst noted, “What’s often overlooked in these moments is the potential for an H&S Top Failure pattern, which remains in play, especially as this structure is forming above the 200MA, a key trend filter I use to assess bullish or bearish bias within patterns.”
This aligns with historical technical analysis by Edwards & Magee in Technical Analysis of Stock Trends, which identified cases where an H&S pattern failed, leading to a sharp rally instead of a breakdown. If this occurs, analyst Ali Martinez believes that XRP could surge to $5.
Meanwhile, some analysts have advocated for patience, highlighting XRP’s long-term bullish outlook. In a Thursday tweet, analyst Dark Defender pointed to Fibonacci extension levels and XRP’s seven-year consolidation breakout as key indicators.
Providing a three-month update, he noted that the January-February-March candle will close soon, reinforcing a broader bullish momentum. According to his analysis, the third wave could push XRP toward $5.85–$8.08, with the fifth wave potentially reaching $18.22–$23.20.
At press time, XRP was trading at $2.35, reflecting a 4.28% drop in the past 24 hours.
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