XRP Forms Ultra-Rare Fulcrum, Is $4.40 Next?
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 HS top in early April. This action was quickly negated," Brandt said.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bank of America Hartnett: Interest rate hikes become the biggest bullish factor, the logic of ending the bond bubble is spreading
Bank of America strategist Hartnett has made a counterintuitive assessment: the most favorable event for the stock market before the end of the year would be for the Federal Reserve to proactively raise interest rates in October—using a tightening move to curb the out-of-control long end. If the Fed proves its willingness to control inflation and term premium through an October rate hike, the market may actually stop worrying about the 10-year yield surging toward 6%, thereby easing pressure on stocks. Currently, while US stocks have not yet been brought down by interest rates, cracks are quietly spreading in South Korean brokers, French government bonds, and CCC-rated credit bonds.
Goldman Sachs chart: "Gasoline prices determine the US midterm election"! Prediction market shows "Democrats have a 65% chance of sweeping both chambers"
A recent report from Goldman Sachs shows that the Iran war caused oil prices to surge from $3 to $5 per gallon, while the Democratic Party's lead in the general ballot simultaneously expanded from 5 to 9 percentage points—two trends that closely align. Goldman Sachs believes that Hurricane Isaias, once again impacting 63% of offshore capacity in the Gulf of Mexico, has made oil prices a true "ballot decider." Bank of America warns that if the Senate sweeps both chambers, it will trigger significant risk aversion, potentially causing the stock market to plunge by over 10% and weakening the US dollar.
Jefferies warns of a "2008 moment": AI may trigger a "capital destruction" in the US, with capital flowing to Chinese open-source models
Jefferies warns that about half of the $2.34 trillion backlog orders of the four major U.S. hyperscale cloud providers are owed by loss-making companies OpenAI and Anthropic, creating a credit concentration risk similar to the 2008 subprime crisis. Wood believes that the most likely long-term outcome of the AI narrative is a "large-scale capital destruction" in the U.S., with market share shifting to China's low-cost open-source models, and that it will be the credit market that ends this cycle.
Wall Street's hottest strategy faces its worst moment! Hedge funds crowd into dispersion trading and suffer setbacks as traders eagerly await tech earnings to trigger major volatility
For U.S. stock options traders who have been following dispersion strategies over the long term, the next week or so will be a critical window that determines their annual profit or loss.
Crypto prices
More
