XRP’s price performance has shown resilience in the last 30 days as it hovered within the $2 range.
Along with this notable outlook, Peter Brandt, a well-known veteran trader, has highlighted a “Head and Shoulder” (HS) pattern with XRP.
XRP’s Head and Shoulders Pattern Signals Potential Reversal
In a post on X, Brandt noted that XRP’s resilience and bullish outlook may suffer a reversal based on this technical setup.
Notably, the HS structure refers to the shift from a bullish to a bearish pattern, heralding the end of an upward price movement.
This indicator signals a potential downward trend for an asset in the crypto market.
According to Brandt, “We are now range bound.” XRP price is currently trading within a price range, which suggests that the coin has yet to break.
The veteran trader predicts two likely scenarios that could occur with XRP.
He insists that if XRP manages to move above the $3.00 resistance level, the bearish Head and Shoulder pattern will not matter.
“Above 3.0, I would not want to be short,” Brandt stated.
This means that short position traders betting on XRP price decline should reconsider their stance.
Image Source: Peter Brandt on X
However, the renowned trader sees another situation where holding XRP becomes risky. “Below 1.9, I would not want to own it,” he wrote.
This suggests that if the price of XRP falls below $1.90, the bearish HS pattern becomes confirmed and could spark further decline.
Also, this bearish situation could see XRP price push towards $1 at $1.07, a price level the coin has not recorded since November 2024.
Regulatory Developments and ETF Speculation Fuel Market Optimism
Meanwhile, XRP price has continued to sustain its bullish momentum, consolidating around the $2.35 – $2.45 range.
Market indicators remain positive and signal that XRP has room for further upward price movement. XRP trading volume is also in the green, with a 17.44% surge to $3.04 billion in the last 24 hours.
Analysts highlight bullish sentiments about the US SEC dropping its lawsuit against Ripple Labs as a key catalyst to its price action.
Notably, Stuart Alderoty, Ripple’s Chief Legal Officer, announced that the Securities and Exchange Commission (SEC) legal battle is finally over.
According to Alderoty, Ripple agreed to drop its cross-appeal. Also, the SEC will keep $50 Million out of the initial $125 Million fine imposed on the company.
Following the update, XRP price jumped slightly by 1.25%. However, XRP was trading at a 3.88% loss to $2.32 as of this writing, still within the consolidation price range.
Additionally, the potential for more notable asset managers to file for a spot XRP ETF is also helping to sustain the price outlook.
Nate Geraci, ETFStore President, recently predicted that approval for XRP ETF is imminent.
According to him, it is obvious that getting regulatory approval for XRP was only a matter of time.
He also thinks asset managers like Fidelity and BlackRock cannot ignore joining the XRP ETF race.
XRP Price: Drop Before a Rally?
Amid these developments, analysts are offering different price predictions for XRP. These analysts opine that a significant drop appears likely before a major rally takes place.
They suggest a deep crash to around the $1 range could catalyze a strong rebound move.
Some analysts have made bold predictions that XRP’s rebound could fuel a 10X rally for the coin from its current value.
