XRP Faces Bearish Pressure: Analyst Predicts 43% Drop if $1.9 Support Breaks

Ripple’s XRP has struggled to maintain bullish momentum despite recent positive developments regarding the SEC lawsuit. The altcoin remains trapped in a Q1 downtrend, currently down 30% from its record high of $3.4. Attempts to surge past $2.5 have been met with resistance, leaving investors uncertain about its next move.

Peter Brandt Predicts a 43% Drop if Key Support Fails

Veteran price chart analyst Peter Brandt has sounded the alarm on XRP’s bearish structure. According to Brandt, XRP has formed a classic head-and-shoulders (H&S) pattern, a well-known bearish reversal signal. If the price drops below $1.9, the pattern could trigger a 43% decline, targeting $1.07.

Brandt’s warning was clear: “$XRP is forming a textbook H&S pattern. So, we are now range-bound. Above $3, I would not want to be short. Below $1.9, I would not want to own it. H&S projects to $1.07.”

On-Chain Data Signals Weakness

On-chain metrics reinforce concerns over XRP’s current price trajectory. XRP Ledger’s active addresses have plummeted by 62%—from 74,000 in December to just 28,000 in March—indicating declining network engagement.

Furthermore, Santiment’s MVRV Z-score, which assesses whether an asset is over or undervalued, remains at 2.8. While this is lower than its December peak of 6, it still suggests that many holders are in profit and could sell, adding downside pressure.

Accumulation Suggests Some Bullish Hopes

Despite bearish signals, large investors seem to be accumulating XRP. According to Coinglass, $43 million worth of XRP was withdrawn from exchanges in the past week, with a total of $290 million leaving exchanges in March. This suggests that some investors anticipate a price rebound.

From a technical perspective, XRP remains above the 200-day moving average (DMA), a crucial support level indicating that its broader bullish market structure is intact. However, the $2 and $1.4 levels remain key support zones to watch before Brandt’s bearish target of $1.07 becomes a reality.

Also Read: Crypto Expert Claims XRP’s True Value Exceeds $100 – What’s Holding It Back?

As XRP continues to consolidate, traders should closely monitor whether it can hold above $1.9 or succumb to further downside pressure.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Andrew Chen

I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.