The recent developments surrounding XRP have sparked renewed enthusiasm within the crypto community, with both investors and analysts expressing optimism about its potential for growth. Having recently crossed the crucial $1 mark for the first time in almost three years, XRP appears to be gearing up for a significant upward trajectory, contingent upon breaching its previous highs. Interestingly, even Peter Brandt, a long-time skeptic of XRP, is shifting his outlook, hinting at an explosive rally should specific price levels be surpassed.
XRP’s Promising Setup
Peter Brandt, an esteemed trader known for his critical stance on XRP, has noted a potent bullish signal pending a breach of the 2021 high of $1.96. His analysis is particularly striking given his historical skepticism.
The Symmetrical Triangle Formation
A detailed look at the accompanying chart identifies a symmetrical triangle, often referred to as a “coil” pattern. This formation has evolved since XRP’s steep decline from its all-time high of $3.31 back in early 2018. Over time, this structure has exhibited:
- Lower highs: Reflecting a descending resistance since the 2018 peak.
- Higher lows: Marking an ascending support line dating back to 2020.
This tightening price action suggests a considerable phase of consolidation, where volatility is waning, hinting that a breakout may soon occur.
Recent Milestones
The recent surge above the $1 mark signifies a critical breakout from the upper boundary of this multi-year triangle formation. This development carries substantial weight, as XRP has now surpassed its 2023 high of $0.93. Following its breakthrough moment, XRP peaked at $1.265 on November 16, demonstrating a temporary retracement while trading around $1.11 and maintaining a position above the psychologically significant $1 level.
Examining Brandt’s chart, the 8-week simple moving average (SMA) currently resides at $0.6775, pointing to a robust upward momentum. Additionally, trading volume has surged during this breakout, indicating a solidified trend. Notably, values reflected in the Average True Range (ATR) and Average Directional Index (ADX) are declining, reinforcing the notion that XRP is experiencing a contraction in volatility, a precursor to a potential explosive move.
The $1.96 Resistance Level
Brandt has spotlighted the $1.96 resistance level that XRP touched in April 2021 during a previous rally, suggesting that overcoming this barrier could ignite a substantial surge. In a playful nod, Brandt employed emoticons to describe the scenario as a “rocket-like” ascent should XRP successfully breach the $1.96 mark.
Despite maintaining a buoyant outlook on XRP’s potential rally, Brandt made clear that he does not currently hold or intend to invest in XRP, reaffirming his allegiance to Bitcoin (BTC) and Solana (SOL), along with his involvement in non-fungible tokens (NFTs) through his Chart Wizards initiative.
As the cryptocurrency landscape continues to evolve, XRP’s trajectory will be fascinating to observe, especially given the shifting sentiments among notable analysts. Investors remain vigilant, keenly awaiting the upcoming movements that could shape the future for XRP in the coming months.
