XRP is forming a rare continuation pattern that could lead to a significant price increase according to expert Peter Brandt's analysis. This article discusses the details of this situation.
Rare Pattern Indicates Possible Rise
According to veteran trader Peter Brandt, XRP has formed a rare continuation pattern known as the 'compound fulcrum,' which could drive the price to $4.40. This event follows a prolonged decline and comes after April's failed breakout.
April's False Breakout and Its Consequences
Brandt previously saw XRP in a bearish light. However, the swift invalidation of the head and shoulders pattern earlier this year prompted him to reassess the situation. He now interprets the current structure as a bullish signal. He notes that failed patterns often carry more significance than completed ones.
Increased Investor Activity
On July 12, on-chain data revealed the creation of 6,939 new XRP wallets in a single day, indicating growing investor interest. The market appears to be reacting to changes in sentiment that align with Brandt's revised interpretation.
The current chart structure of XRP suggests a possible trend reversal. The increase in user activity and the bullish pattern imply that the price may reach $4.40, provided that levels do not fall below the current low.