TLDR
- Peter Brandt identified a descending triangle pattern forming on the XRP daily chart.
- He warned that a close below $2.66 could confirm a bearish breakdown toward $2.14.
- XRP is trading near a critical support level that has held since July.
- Investors expect the SEC to approve a spot XRP ETF once the government shutdown ends.
- ETF approval could result in over $8 billion in inflows, driving XRP prices higher.
XRP risks a deeper drop as veteran trader Peter Brandt warns of a descending triangle forming below $2.66. He predicts a strong bearish breakout toward $2.14 if support fails. However, several bullish technical patterns and ETF expectations present a different outlook for XRP’s price trajectory.
XRP Faces Bearish Target Below Key Support
Peter Brandt shared a chart on X, highlighting a descending triangle that has been forming since August 8. This triangle features a steady horizontal support at $2.6878 and a declining resistance line. He stated,
“If XRP closes below $2.66, the pattern confirms a potential target of $2.14.”
On the left is a classic descending triangle from Edwards and Magee, showing what descending triangles are supposed to do. On the right is a developing descending triangle. ONLY IF it closes below 2.68743 (then I'll be a hater), then it should drop to 2.22163. $XRP pic.twitter.com/3GI7nT1TaW
— Peter Brandt (@PeterLBrandt) October 7, 2025
Brandt expects the breakdown to result in a 20% drop from the widest point of the triangle. He noted that such patterns often resolve with bearish momentum if volume supports the move. However, XRP continues trading close to this support, which has held firm since July.
Even so, XRP remains volatile around the $2.66 level, with increasing volume on bearish days. The possibility of a breakdown continues to pressure buyers. If confirmed, $2.14 would mark XRP’s lowest point since mid-summer.
XRP ETFs Could Trigger a Price Rebound
Expectations for the approval of a spot XRP ETF remain high among investors and analysts. The U.S. SEC may approve the product after the government shutdown concludes. If approved, analysts project that inflows will exceed $8 billion.
These inflows could mirror Bitcoin and Ethereum ETFs, which have attracted $61 billion and $14 billion, respectively. XRP could benefit similarly, boosting buying interest and upward pressure on its price. A rally could challenge Brandt’s bearish outlook.
ETF launches often spark short squeezes, especially in assets with high short interest. XRP’s bearish sentiment could reverse sharply if ETF demand accelerates. In that case, XRP could reclaim $3.67 and test $5.
Market participants remain cautious, but optimism over regulatory clarity supports a bullish thesis. ETF speculation now plays a critical role in short-term price movements. As news emerges, the XRP price could react quickly.
Bullish Chart Patterns Challenge Bearish Outlook
While Brandt sees a descending triangle, other patterns show bullish signals. The current XRP structure also forms a falling wedge, often considered a reversal setup. This wedge suggests a breakout above resistance is possible.
Moreover, XRP’s price action appears to form a potential cup-and-handle pattern. This pattern typically signals continuation toward higher levels after consolidation. The “handle” currently retraces gains but may soon break out.
The Elliott Wave Theory also indicates that XRP is in its second wave pullback. This phase often retraces 50% to 61.8% of the first wave. A third wave breakout may follow; historically, this is the most substantial wave in the cycle.
