Trading Veteran Says XRP Is Forming a Major Reversal Pattern
Support barriers sit at $0.261, $0.241, and $0.212, respectively.
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Ripple’s XRP went through a steep bull rally since the beginning of 2020 that saw its price surge by nearly 90%. Now, it seems the token has reached exhaustion and one of the most prominent technical analysts in the industry estimates that it could face a steep correction.
XRP Is on the Verge of a Major Price Movement
Peter Brandt, a 45-years trading veteran, recently pointed out that a head-and-shoulders pattern could be developing on XRP’s 1-day chart. This technical formation is considered to be one of the most reliable trend reversal patterns.
At current, XRP appears to have formed the right shoulder of the bearish pattern, which leads Brandt to believe that a breakout could take place very soon. A downward impulse that allows this cryptocurrency to close below the neckline at $0.268 could trigger a 23% correction.
XRP could then plummet to around $0.207, according to the trading veteran. This target is determined by measuring the distance between the head and the neckline and adding that distance down from the breakout point.
“If this H&S top plays out [then the] target would be .2071,” said Brandt.
On its way down, XRP could face significant support around the 50%, 61.8%, and 78.6% Fibonacci retracement levels. These support barriers sit at $0.261, $0.241, and $0.212, respectively.
Nevertheless, a spike in demand for XRP that allows it to break above the height of the right shoulder at $0.309 could invalidate the bearish outlook presented by Brandt.
Such a bullish impulse would likely take this crypto to retest the 200-three-day moving average on the 3-day chart. This hurdle was able to reject the price of XRP from a further advance on Feb. 15. Thus, a break above it could set the stage for this crypto to reach higher highs.
Time will tell whether the bulls or the bears will be able to gain control of XRP’s trend.