Experienced trader Peter Brandt has taken a bearish tone for the XRP price. He warns that the token may be forming a classic double-top pattern. His stance comes despite Ripple rapidly growing the ecosystem through multichain stablecoin expansion and new institutional tools for XRP holders.
Brandt's warning comes at a time when the fundamentals and infrastructure narrative of XRP seem to be strengthening. This creates a growing gap between technical signals and developments aimed at long-term adoption.
Brandt signals potential double-top risk for XRP price
The experienced chartist pointed out what he sees as a potential bearish signal on the XRP price chart. According to Peter Brandt, XRP could form a double-top, a frequently cited reversal pattern that occurs when an asset fails to break through resistance after two attempts.
Double-top patterns in technical analysis usually indicate declining bullish momentum and can be followed by a stronger decline if this pattern is confirmed.
“I already know that your Riplosts XRP will always remind me of this — ask me if I care. This is a potential double-top,” Brandt wrote.
The XRP price is consolidating after the rally at the end of 2024, drawing more attention to whether the support levels will hold.
Nevertheless, Brandt also acknowledged that the pattern could fail, leaving room for other interpretations.
“Of course, it can go wrong, and then I will deal with it when the time comes. But for now, this has bearish implications. Whether you like it or not — you will have to deal with it,” he added.
Analysts emphasize bullish historical context
Other market analysts see the current situation very differently. Analyst Steph is Crypto pointed out the recurring behavior of XRP around its 50-week simple moving average (SMA). According to her, previous cycles indicate exhaustion at the bottom rather than the beginning of a larger decline.
“Every cycle, when XRP drops below the 50-week SMA and stays there for about 50 to 84 days, a strong rally follows,” the analyst noted.
Historical examples include a rally of 211% after 70 days below the SMA in 2017, a rise of 70% after 49 days in 2021, and a jump of 850% after 84 days in 2024.
The XRP price has now been below its 50-week SMA for about 70 days, placing it exactly within the same historical window.
Analysis shows that what appears bearish on its own may actually correspond with previous cycle bottoms. This reflects the current division in technical interpretation.
Ripple is expanding RLUSD to Layer-2 networks: institutional access continues to grow
As the technical debate heats up, Ripple continues to expand the ecosystem. On December 16, the company announced that its US stablecoin, Ripple USD (RLUSD), will expand to Optimism, Base, Ink, and Unichain.
This utilizes Wormhole’s Native Token Transfers (NTT) standard for multichain interoperability.
RLUSD was originally issued on the XRP Ledger and Ethereum. The Layer 2 rollout aims to improve scalability, liquidity, and real-world utility on DeFi and institutional platforms.
Ripple emphasized that RLUSD is issued under a trust charter from the New York Department of Financial Services (NYDFS). This makes it one of the most strictly regulated stablecoins entering a Layer 2 ecosystem.
The company has also applied for a US OCC license and has recently received recognition from regulators in Dubai and Abu Dhabi.
Wormhole added that XRP holders can use XRP together with RLUSD as a “primary trading and liquidity pair” on supported chains, facilitated by issued wrapped XRP (wXRP) for use across different chains.
The institutional tools for XRP are also expanding. Digital Wealth Partners has recently launched an algorithmic XRP trading strategy for qualified retirement accounts, with insured storage through Anchorage Digital.
This service provides affluent investors access to systematic XRP trading within regulated, tax-efficient accounts. This demonstrates broader efforts to integrate crypto into traditional wealth management structures.
Now that XRP is facing conflicting technical signals, the outcome may depend on whether bearish chart patterns will prevail or if historical cycles and growing usability will ultimately take over.
