Renowned Trader Peter Brandt Warns of Potential Capitulation Event for XRP
Experienced trader Peter Brandt is sounding the alarm on the payments altcoin XRP, suggesting that it may be on the verge of a significant capitulation event. Brandt, with a massive following of 781,500 on the social media platform X, points out that XRP is currently forming a head-and-shoulders (H&S) pattern on its daily chart.
An H&S pattern is typically seen as a bearish indicator, signaling that an asset may be losing the momentum needed to sustain its upward trend, especially after failing to achieve new highs. Brandt highlights that the bearish structure could be invalidated if XRP manages to surpass a crucial resistance level. However, if XRP fails to do so, Brandt warns that the cryptocurrency could potentially break below the $1.90 support level, leading to a significant downward spiral.
Brandt’s message to his followers is clear: “Don’t shoot the messenger.” He emphasizes that XRP is displaying a classic complex H&S pattern, which could turn bullish if it surpasses $3.0. Otherwise, the implications point towards a decline to $1.07. Brandt humorously suggests taking any issues with this analysis up with Magee and Edwards, while referencing XRP as a “favorite Beanie Baby/Pet Rock crypto.”
As of the current writing, XRP is valued at $2.12, reflecting a decline of over 3% for the day.
Bitcoin Facing Bearish Continuation Pattern, Warns Brandt
Shifting focus to Bitcoin, Brandt cautions that the flagship cryptocurrency has broken down from a bearish continuation pattern following its drop below $85,000. He predicts that Bitcoin is now likely headed towards a level below $70,000.
Once again, Brandt reiterates his stance as a messenger of the charts, stating, “Just reporting on what the chart says until it says something different.” He points out that a bear wedge has completed with a target of 65,635 based on the double top formation.
At the time of writing, Bitcoin is trading at $82,791.
S&P 500 Enters Established Downtrend, According to Brandt
Brandt also provides insights into the S&P 500, indicating that the stock market index has transitioned into an “established downtrend” after the 5,864 support level flipped into resistance. He projects a target of 5,170, representing an 18% correction from the index’s peak.
As of the latest market close, the S&P 500 is hovering around 5,580 points.
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