One of the most seasoned technical analysts and chartists in the industry has delivered a dire warning about XRP, and it doesn’t bode well for the asset’s price. Peter Brandt has spotted an infamous chart pattern that he estimates could send the XRP price to all-time lows if it’s completed.
XRP Is Teetering On The Edge Of Major Meltdown
Since topping close to $2 in April this year, XRP has reversed course and remained under the firm grip of bears. As a result, the cryptocurrency has continued to lose value as San Francisco-headquartered payments firm Ripple battles a lawsuit brought forward by the U.S. Securities and Exchange Commission. Although Ripple has notched major wins in the case so far, the XRP price remains pretty much in the doldrums.
Peter Brandt, a 45-years trading veteran, recently indicated in a June 25 tweet that a head-and-shoulders pattern is developing on the XRP/BTC chart. The H&S pattern is deemed one of the most accurate trend reversal formations and it’s typically a bearish sign.
Ripple could be on the verge of becoming a “tidal wave”, which leads Brandt to believe that XRP could hit new all-time lows if the head-and-shoulders dynamic plays out.
Based on the chart, the XRP price fell below the H&S neckline with strong volumes, which signals a bearish reversal. The neckline of the pattern rests at 2,120 satoshis, while the baseline sits at 1,794 satoshis. Thus, the profit target for the XRP/BTC pair is around 326 satoshis.
XRP is changing hands at $0.6275 as the bears attempt to push the price lower. At the current price, the cryptocurrency is still a staggering 81% from the lifetime high of $3.40 posted in January 2018.
If the H&S pattern is invalidated, the bearish view will be negated and that could open the gates to a rally to new highs. Moreover, if the bulls propel the price past the 69 cents resistance level, the coin will aim for $0.79 next. This is a key resistance to watch out for as a break above it will suggest the bulls are in firm control.