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Peter Brandt, a long-term XRP critic, believes the current setup for XRP signals extreme bullishness if it can breach the 2021 peak.
XRP recently achieved a major milestone, crossing the $1 mark for the first time in nearly three years. The recent development has triggered optimism among investors and analysts, with most expecting further upside from this point.
Surprisingly, Peter Brandt, a renowned trader and vocal critic of XRP, now acknowledges the potential for explosive growth if XRP can break above key levels. His latest analysis suggests a promising setup for XRP, despite his predominantly skeptical stance.
XRP’s Coil Pattern
The accompanying chart reveals a symmetrical triangle or “coil” pattern which signals tightening price action over an extended period. This structure began forming following XRP’s drop from its all-time high of $3.31 in early 2018.
As XRP continued to witness lower highs and higher lows from this level, the triangle formed a descending resistance from the 2018 peak and an ascending support line originating in 2020. This shows consolidation, with diminishing volatility suggesting an impending breakout.
XRP’s recent move above $1 confirms a breakout from the upper boundary of this multi-year triangle. This is a massive event, as XRP cleared its 2023 high of $0.93 during this surge.
Following a reclamation of the $1 mark, the altcoin reached a peak of $1.265 on Nov. 16 before retracing slightly. Currently, it trades around $1.11, maintaining its position above the critical psychological level of $1.
Data from Brandt’s chart confirms that the 8-week simple moving average (SMA) currently sits at $0.6775, suggesting strong upward momentum. Additionally, XRP is witnessing increasing trading volume during the breakout. This further validates the uptrend potential.
In addition, the chart shows lower values in the Average True Range (ATR) and Average Directional Index (ADX), confirming that volatility is contracting at press time, a sign of a potential explosive push.
Brandt Expects XRP Rally
Peter Brandt called attention to the $1.96 resistance level, which XRP attained in April 2021 during the previous market run. Breaking this level could trigger a massive rally.
Using emoticons, Brandt suggested a “rocket-like” move if XRP successfully clears the $1.96 barrier. Nonetheless, the analyst failed to provide any actual price target.
Despite his bullish outlook, Brandt clarified that he does not hold or plan to invest in XRP. According to him, he remains loyal to Bitcoin (BTC) and Solana (SOL), while also being involved with non-fungible tokens (NFTs) through his Chart Wizards project.