Veteran trader Peter Brandt analyzed XRP’s price action since the latest drop, criticizing the altcoin but suggesting it could be heading for a bullish move.
Known for his long-time criticism of XRP, Brandt recently shared a monthly chart of XRP/BTC, highlighting what he called an 11-year complex head and shoulders (H&S) pattern.
Brandt looks askance at XRP
Mockingly, Brandt argued that if this pattern ends, XRP could fall to zero against Bitcoin. He introduced this after a major decline following the SEC’s notice of appeal of Ripple’s lawsuit, which led to a sharp drop in XRP.
Next appeal reportsYesterday XRP fell by 9.77%, and today it fell another 2.95%. Overall, XRP has dropped 19.69% over the past four days. Despite the overall decline in the broader market, the sharper decline in XRP led to an intraday drop of 9.47% on the XRP/BTC chart.
However, Brandt’s chart shows that the recent crash has caused XRP to reach a significant support level. against BTC. Notably, this level acts as the minimum of the range where the altcoin typically bounces. If XRP respects this support, there is a possibility of another recovery.
The market has repeatedly tested the long-standing range between 0.00000857 BTC and higher resistance levels above 0.00002000 BTC. The latest drop saw XRP crash to a two-month low of 0.00000843 BTC today, but has since recovered and is now trading at 0.00000863 BTC.
XRP’s ability to keep this range low suggests the bearish outlook may not be as clear-cut as Brandt’s criticism suggests. The veteran trader’s subsequent remarks on XRP’s price action confirmed this.
XRP May Be Preparing for a Bullish Move
It is noteworthy that another experienced trader responded to Brandt’s criticism: share another look. This trader presented a similar XRP/BTC monthly chart, but confirmed the strength of support at the low of the range.
He noted that while Brandt may be expecting a crash, XRP is currently at levels where previous bounces have occurred. The trader noted that XRP has been constantly bouncing off this range, with a “nice range” forming between the lows and highs over the years.
Interestingly, Brandt agreed with the assumption of a possible reversal. He confirmed that his previous report was an attempt to anger XRP enthusiasts, whom he persistently criticized for many years.
In fact, there is a possibility that XRPUSD will display a bullish continuation triangle. You know me well enough to know that some of my posts are intended to poke fun at the dogmatic bulls of various junk coins 🤣🤣😉😉
— Peter Brandt (@PeterLBrandt) October 3, 2024
To support the bullish outlook, Brandt general XRP/USD monthly chart. Despite his criticism, the market veteran acknowledged the possibility of a bullish continuation triangle forming.
The chart highlights a symmetrical triangle that could lead to a breakout. With XRP/USD trading around $0.5176, it is consolidating inside the triangle that formed in January 2018. Data shows that XRP is near the top of this triangle and a breakout may be imminent.
Main resistance at 8 SMA
The XRP/USD chart also shows the 8-period SMA ($0.5560) acting as resistance, which XRP has struggled to break through in recent months. XRP closed above this moving average in September but has now moved below it amid the recent crash.
However, if XRP manages to break above the new resistance level, it could trigger a significant bullish move, supported by the completion of the triangle. If this pattern works, XRP/USD could see significant upside potential with the next resistance level at $1.00.
