Ripple’s XRP token could be on the brink of a major 30% correction if the recent head and shoulders pattern plays out, according to renowned veteran trader Peter Brandt.
Brandt explained his view on Twitter by stating: “It will be interesting to see if this H&S top plays out. If so, the target would be $0.2071.”
XRP is now 23% lower than Saturday’s high of $0.35 with it currently trading at around the $0.27 level of support.
A head and shoulders pattern in terms of technical analysis is typically a reversal signal which, should it come to fruition, means it will likely cause a new bearish trend.
However, one positive for XRP is that it bounced from the daily 200 exponential moving average (EMA), which was a key point of support and resistance throughout both 2018 and 2019.
It will be interesting to see if this H&S top plays out. If so, the target would be .2071.
This Tweet poses a possibility. This is not a prediction. pic.twitter.com/IJiMR2AEnV
— Peter Brandt (@PeterLBrandt) February 20, 2020
If Thursday’s daily candle can close above the 200 EMA it would signal that XRP may be ready to make a move back to the upside, thus invalidating Brandt’s theory of a possible head and shoulders.
Closing a daily candle below the 200 EMA would be catastrophic for XRP considering the daunting possibility of a reversal.
If a break down in price happens this evening, initial price targets would be $0.243 and $0.230 as well as Brandt’s target of $0.2071.
Latest XRP price
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About Ripple (XRP)
Ripple is a real-time gross settlement system (RTGS) developed by the Ripple company. It is also referred to as the Ripple Transaction Protocol (RTXP) or Ripple protocol. It can trace its roots to 2004 when a web developer called Ryan Fugger had the idea to create a monetary system that was decentralised and could effectively allow individuals to create their own money.
Ripple is one of the largest cryptocurrencies and is one of the top 10 cryptocurrencies by market capitalisation.
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