XRP Faces Huge 43% Drop According to Analyst Peter Brandt
Ripple (XRP) failed to decisively break the $2.5 threshold despite recent positive news regarding its lawsuit with the SEC. The cryptocurrency remains stuck in its first-quarter downtrend and has lost 30% from its all-time highs of $3.4.
Renowned chartist analyst Peter Brandt projected that the altcoin could plummet by 43% if it slides below $1.9. He mentioned the bearish formation of a head and shoulders pattern, which, if validated, would target $1.07.
“$XRP is forming a textbook head and shoulders pattern. We are now in a trading range. Above 3,000, I would not want to be short. Below 1.9, I would not want to own it. The head and shoulders pattern projects to 1.07.”
Uptrend Intact for XRP, but Bearish Indicators
Some on-chain signals also paint a weakened outlook. On a weekly average, the number of active addresses on the XRP Ledger has dropped by 62%, decreasing from 74,000 users at its peak in December to 28,000 in March.
According to Santiment’s MVRZ score, which tracks if an asset is overvalued or undervalued relative to its price, XRP was still relatively overvalued at current levels. The indicator stood at 2.8, meaning long-term holders had a latent gain of 2.8X to 6X and could potentially take profits, putting pressure on XRP.
However, the accumulation level observed over the last seven trading days did not support the bearish inclination. According to Coinglass data, $43 million worth of XRP was withdrawn from exchanges this week. In total, $290 million worth of XRP left exchanges in March, indicating some players anticipated further rally. Will their bullish bets pay off?
From a chart perspective, key support levels to watch before Brandt’s target were $2 and $1.4. Additionally, price action remained above the 200-day Moving Average (DMA) in red, indicating XRP’s bullish market structure remained intact, at least at the time of writing.
However, there is a bearish divergence in the daily RSI, with a lower RSI despite a higher price on January 18th.
While on-chain signals and technical analysis raise concerns, XRP’s bullish market structure still seems intact. However, Peter Brandt’s bearish forecast should not be ignored as a break below $1.9 could trigger a 43% drop to $1.07, which aligns with the next demand zone (in red). XRP investors will need to closely monitor market developments in the coming weeks.
How to Buy XRP on Weex ?
Ripple’s token (XRP) is available on Weex, an exchange perfect for investors of all levels. Here’s a handy guide to buying XRP in a few simple steps:
- Create a Weex account
Visit the official Weex website and sign up with your email or phone number. Confirm your registration via the code received and activate two-factor authentication (2FA) to secure your profile. - Verify your identity (KYC)
Complete the KYC verification by submitting an ID document and, if required, proof of address. This quick step is essential to unlock all trading features. - Add funds
Go to “Deposit” and fund your wallet with cryptocurrencies (USDT, BTC, etc.) or via fiat (bank transfer, card, availability dependent). Follow the instructions to finalize. - Find the token
Go to “Trading Spot”, search for “XRP” in the dedicated bar, and select the XRP/USDT pair to open the exchange interface. - Make the purchase
Choose a market order for instant purchase or a limit order to set a specific price. Indicate the desired quantity of XRP, verify, then confirm.
