The crypto market was stirred after chart analyst Peter Brandt placed XRP on his list of short candidates. According to Brandt, the move depends on the completion of a descending triangle that has been developing over the past months.
XRP has been consolidating between the $3 mark and the lower boundary near $2.68, suggesting mounting pressure from sellers.
Brandt’s observation points to a potential breakdown if prices close below the horizontal support line. A move of that nature could signal a renewed bearish phase, prompting traders to anticipate a possible decline toward $2.22 or even lower.
Market Observers Eye Key Support Level
XRP’s recent trading behavior reflects growing uncertainty within the market. Its price has shown repeated attempts to bounce but continues to face resistance along a descending trendline that stretches from the August highs.
The structure of this pattern indicates lower highs and consistent testing of the same support, a formation often associated with weakening buying strength. Hence, if the current level fails to hold, it could confirm Brandt’s bearish outlook.
Technical indicators further support this cautious stance. Moving averages show short-term momentum tilting downward, while the ADX reading remains subdued, revealing that traders are still waiting for a stronger directional signal.
Moreover, volatility continues to tighten, a typical sign that a breakout may be approaching. Traders monitoring these conditions note that such compression phases usually precede sharp market reactions.
Broader Market Context
According to Brandt, confirmation is key before any decisive short positioning occurs. He emphasized that a daily close beneath $2.68743 would mark a technical breakdown of the pattern. Once that happens, downward acceleration could follow as stop‑loss orders get triggered below support.
Conversely, a break above the descending resistance line around $3.10 would invalidate the bearish thesis. Such a move could lead to a short squeeze and spark a quick return toward higher price zones near $3.80.
Consequently, as volatility tightens and traders grow cautious, XRP finds itself at a critical crossroads that could redefine its near‑term direction in the crypto market.