XRP Faces Downward Pressure as Peter Brandt Turns Bearish on Price

TLDR

• Peter Brandt warns XRP may be forming a double-top, signaling potential bearish pressure ahead.
• XRP spent 70 days below its 50-week SMA, historically signaling a strong rally could follow.
• Ripple’s RLUSD stablecoin expands across Layer 2 networks, boosting XRP’s ecosystem growth.
• XRP faces conflicting signals as technical charts suggest downside, while Ripple’s adoption continues to rise.

Veteran trader Peter Brandt has expressed a bearish outlook on XRP’s price, warning that the token may be forming a double-top pattern. Despite Ripple’s efforts to expand its ecosystem, including multichain stablecoin growth and new institutional tools, Brandt’s technical analysis signals potential downside for XRP. This bearish stance comes at a time when the project’s fundamentals and infrastructure are gaining strength, creating a contrast between technical signals and Ripple’s long-term adoption efforts.

Potential Double-Top Pattern Signals Risk

Peter Brandt has identified a potentially bearish double-top pattern forming on XRP’s price chart. A double-top occurs when an asset fails to break above resistance after two attempts. Brandt points out that such patterns are often followed by a decline if confirmed. He acknowledged the possibility of the pattern failing but emphasized that it currently suggests bearish momentum.

Brandt’s analysis comes after XRP has been consolidating following its late-2024 rally. As the price tests key support levels, the market will be looking to see whether these levels hold or break. The double-top pattern would signal waning bullish momentum, potentially triggering a deeper pullback if the pattern is validated.

https://x.com/PeterLBrandt/status/2001345282047660177?s=20 

Brandt, known for his accurate market predictions, made it clear that he is prepared for the pattern to fail. However, he warned that, for now, the chart suggests a bearish outlook. “Love it or not — you need to deal with it,” Brandt stated in his analysis.

Historical Context Suggests Possible Rally

While Brandt’s technical analysis is cautious, other market analysts see potential for an XRP rebound. Analyst Steph is Crypto pointed out that XRP has historically shown bullish behavior after periods of staying below its 50-week simple moving average (SMA). According to the analyst, when XRP spends time below this SMA, a strong rally typically follows.

The analyst highlighted previous cycles where XRP broke below the 50-week SMA and then surged. In 2017, XRP saw a 211% rally after spending 70 days below the SMA. Similarly, in 2021, the price increased by 70% after 49 days under the SMA. These past performance trends suggest that the current setup may point to exhaustion of downside momentum rather than a prolonged decline.

XRP has now spent roughly 70 days below its 50-week SMA, placing it within a historical timeframe that has previously led to strong rallies. Analysts view this as a potential signal that the current pullback could be nearing its end, despite the bearish chart patterns.

Ripple’s Expanding Ecosystem and Institutional Adoption

Despite technical concerns, Ripple continues to expand its ecosystem, strengthening its position in the crypto space. On December 16, Ripple announced the expansion of its US dollar stablecoin, RLUSD, to several Layer 2 networks, including Optimism and Base. This move leverages the Wormhole network’s Native Token Transfers (NTT) standard for multichain interoperability.

Ripple’s RLUSD stablecoin is now issued on the XRP Ledger and Ethereum, with plans for wider integration. Ripple emphasized that RLUSD is issued under a trust charter by the New York Department of Financial Services (NYDFS), making it one of the most regulated stablecoins in the market. Ripple has also applied for a charter with the US OCC, further solidifying its institutional presence.

Moreover, Ripple has seen increased institutional adoption. Digital Wealth Partners recently launched a trading strategy for XRP in qualified retirement accounts. This reflects Ripple’s broader effort to integrate XRP into traditional wealth management and institutional portfolios, despite current technical challenges.

As XRP faces conflicting signals, its future trajectory may depend on whether technical patterns or the growing utility of Ripple’s ecosystem takes the lead.

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