Ripple’s XRP is once again in the spotlight as market watchers weigh a classic bearish signal against a wave of renewed optimism in the derivatives market. While veteran analyst Peter Brandt has identified a head-and-shoulders pattern—a formation that often signals the end of an uptrend—XRP’s resilience above key support levels is keeping bullish sentiment alive among traders and analysts alike .
XRP’s Technical Picture: Bearish Pattern Meets Bullish Momentum
Peter Brandt, a respected voice in technical analysis, recently pointed out that XRP’s weekly chart is showing a textbook head-and-shoulders pattern. Traditionally, this setup hints at a potential reversal from bullish to bearish, especially if the price closes below the neckline, which Brandt places at $1.87 . However, he cautions against jumping to bearish conclusions too soon, emphasizing that as long as XRP remains above this critical support, the uptrend could persist .
Other analysts echo this cautious optimism. For instance, EGRAG CRYPTO highlights that XRP’s position within the Gaussian Channel—a volatility indicator—suggests that momentum remains intact unless the price decisively closes below $1.75 . Meanwhile, Ali Martinez notes that a breakout above $3.00 would invalidate the bearish pattern entirely, flipping the outlook back to bullish .
Derivatives Market Signals Growing Confidence
Despite the technical warning signs, the mood in the XRP derivatives market is upbeat. Open Interest (OI) has climbed by over 6%, reaching $3,77 billion, a sign that more capital is flowing into XRP futures and options . The funding rate has also turned positive, indicating that buyers are willing to pay a premium to maintain their positions—often a precursor to further price gains.
Recent trading activity supports this optimism: short sellers have faced liquidations totaling $9,38 million, compared to $3,10 million in long liquidations, suggesting that bearish bets are being squeezed out as the price recovers.
XRP derivatives data. Source: Coinglass
Key Levels to Watch
• Immediate Support: $2,00. A daily close below this level could see XRP test the neckline at $1,87, which, if breached, may trigger a steeper correction .
• Resistance: The 50-day and 100-day Exponential Moving Averages (EMAs) at $2,22 and $2,23, respectively. A close above these could open the door to a test of the $2,38 trendline.
• Bullish Trigger: A move above $3,00 would invalidate the head-and-shoulders pattern and likely attract fresh buying interest .
Market Context: Macro Factors and Sentiment
XRP’s recent price action comes amid a broader crypto market rebound, fueled in part by easing geopolitical tensions in the Middle East. This backdrop has helped major cryptocurrencies, including Bitcoin and Ethereum, recover from recent lows, providing a supportive environment for altcoins like XRP .
Bottom Line
While the head-and-shoulders pattern on XRP’s chart is a classic warning sign, the current technical and derivatives data suggest that the bearish scenario is far from confirmed. As long as XRP holds above its key support levels, the path of least resistance may remain to the upside—especially if broader market sentiment continues to improve.
