Is XRP About to Crash? Analysts Warn of Head and Shoulders Formation

1 day ago 10

April 2, 2025 by Kashif Saleem

Charting Guy predicts XRP may drop to $1.15 if Head and Shoulders pattern materializes.
XRP’s current market structure shows resilience, holding $2 support, suggesting possible recovery.
Legendary trader Peter Brandt suggests XRP could tumble to $1.07 unless it breaks above $3.

XRP’s price action has caught the attention of crypto analysts, with concerns mounting over a potential Head and Shoulders formation. The pattern, often a sign of an upcoming downturn, has led one analyst to predict a significant price drop. The “Charting Guy,” a well-known analyst on X, has outlined the possibility of falling to as low as $1.15 if the bearish setup plays out.

This formation typically signals a shift from an uptrend to a downtrend. It consists of three peaks—Left Shoulder, Head, and Right Shoulder—suggesting a weakening price trend. However, Charting Guy notes an irregularity in the pattern, as its current setup appears to have two right shoulders instead of one. This has left some doubt about whether the formation will fully materialize.

Still, if it does, XRP could face a sharp decline, hitting the Fibonacci Golden Pocket retracement zone between 0.618 and 0.786. This worst-case scenario would mean a significant dip from its current levels, alarming many traders.

XRP Bullish Structure Still Holds

Despite this ominous outlook, Charting Guy remains optimistic about XRP’s broader market structure. He argues that even if the price drops to $1.15, it could serve as a natural pullback within an overall bullish trend. Currently, the token has been holding the $2 level on daily closes, signaling resilience and the possibility of a strong recovery.

Additionally, key support levels remain intact. It has repeatedly bounced within the $1.7 to $1.9 range during pullbacks, an area Charting Guy is watching closely for a potential rebound. If support holds, the cryptocurrency could see a return to higher highs and higher lows.

Meanwhile, resistance levels to watch include $2.27, which serves as a short-term ceiling. Further upside could push it into the $3.14 – $3.32 zone, where renewed bullish momentum might trigger a breakout.

Veteran Traders Weigh In

On March 29, legendary trader Peter Brandt chimed in, noting that XRP had formed a Head and Shoulders top. According to Brandt, this pattern could send XRP tumbling toward $1.07. However, he also pointed out that a breakout above $3 would invalidate this bearish scenario, potentially setting the stage for a massive rally.

Market Analyst Ali Martinez echoed this sentiment, stating, “If $XRP can break above $3, it would invalidate the current head-and-shoulders pattern, potentially flipping the outlook bullish.” This suggests that despite near-term risks, there’s still hope for an upside move if it can reclaim key levels.

On the other hand, trader Jesse has dismissed concerns about a bearish breakdown. In response to Charting Guy’s analysis, he argued, “So an influx of analysts are calling for XRP crash because of a ‘bearish’ head and shoulders… I disagree.” Jesse believes that what appears to be a Head and Shoulders formation is an elusive reaccumulation pattern, resembling its setup before its explosive rally in 2017.

Jesse’s analysis offers a stark contrast to the bearish predictions. He claims that the so-called “right shoulder” has stretched too long for the pattern to remain valid. Instead, he suggests that if history repeats itself, it could be gearing up for a parabolic surge, with a potential price target of $18.

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