XRP has carved a "dramatic and highly rare continuation compound fulcrum," a technical setup that could catapult the price to $4.40, according to legendary trader Peter Brandt.
In a recent tweet, Brandt stated that following April's false breakout, the XRP chart has formed a compound fulcrum that has implications for "XRP price to trade at $4.4."
As long as XRP does not close below this week's low, Brandt maintains his bullish outlook, citing the pattern as a "compound fulcrum," an extremely rare pattern that always marks a bottom and occurs when a market forms a complex Head & Shoulders top pattern after a prolonged and extended decline.
"Unless XRP closes back below this week's low my interpretation will remain that this pattern is best described as a compound fulcrum until proven differently," Brandt stated.
The price target of this pattern is $4.40, which represents a 58% increase and a major breakout from current trading levels.
In a tweet yesterday, Brandt highlighted XRP's upward trend: "Everything I've come to know know about charts informs me that the next trend in this mystery market will be Up Up Up."
From bearish to bullish: Chart morphs
Brandt’s analysis marks a sharp turn from his previous bearish outlook. In a tweet, Brandt explains his rationale, which is that charts are always morphing and that chart patterns might sometimes fail.
According to Brandt, "Charts are always morphing—they might morph from a possible chart formation with one implied outcome into another chart pattern with different implications."
Chart patterns sometimes fail, according to Brandt, referring to XRP’s false breakout in April, which initially hinted at a bearish Head & Shoulders top. However, that formation was swiftly invalidated.
"There is actually more meaning in a failed pattern than in a completed pattern. You do not understand that XRP actually had a completed intraday H&S top in early April. This action was quickly negated," Brandt said.
