Peter Brandt, one of the most prominent commodity traders, has opined that the current XRP price action looks "very negative."
Brandt's chart shows that the Ripple-linked token is in the process of forming a descending triangle pattern.
Weakening momentum
The current support level is located around $2.78, with a downward-sloping trendline connecting several lower highs above it. This essentially means that the price of the token is weakening, meaning that it is falling to reach the previous peak.
Currently, the triangle is gradually getting narrower. The bearish pattern will be completed if the price of the Ripple-linked token eventually plunges below the aforementioned support at $2.78.
In such a case, previous support levels, such as $2.4 and $1.9, could emerge as potential bearish targets.
XRP's 6% plunge
The price of the XRP token has now collapsed by almost 6% this Friday. Earlier today, it reached an intraday low of $2.8 on the Bitstamp exchange.
The token is now on the cusp of plunging to its lowest level since Aug. 3. XRP is now down 24% from its all-time peak of $3.67 that was achieved on July 18.
XRP has plunged alongside the broader crypto market. The price of Bitcoin dipped below $109,000 earlier this Friday.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team