“The peaks look grand, but sellers command; hold your ground or face the bearish hand.”
Peter Brandt, a well-known commodity trader, warned XRP investors about a possible downward trend in the well-known cryptocurrency.
Brandt claims that XRP might have developed a traditional double-top pattern, which might suggest that a big decline in price is imminent.
The pattern of a double top looks like the letter “M.” It happens when an asset reaches a high price, falls to a support level (referred to as the “neckline”), then climbs to the same high once more but is unable to break it. This pattern indicates that buyers are unable to drive up prices since demand is declining.
Brandt points out that XRP just tested its prior high but failed to beat it, resulting in the two peaks of the double top.
There is currently pressure on the neckline, or crucial support level. It is seen as a strong bearish indication if there is a verified breach below this line.
If the pattern continues, XRP may return to the 50-cent area, which would represent a sharp drop from present levels.
Additionally, Brandt observed a slight downward-sloping trendline on the second high, indicating that selling pressure had begun to accumulate before the possible breakdown.
A quick reversal is still possible, though. The pattern, referred to as a “bear trap”, would be invalidated if XRP rose back over $2.00.
For the time being, investors should exercise caution due to the negative technical indicators, according to Brandt’s research.
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