XRP’s price has been surging in recent weeks, ever since bottoming around $0.17 shortly after the SEC lawsuit against Ripple was announced. According to widely-followed veteran trader and CEO of proprietary trading firm Factor LLC, Peter Brandt, the crypto’s rally could only be getting started. And chances are, it will smash all-time highs in the near future.
Looking at the weekly chart, Brandt observes that XRP has broken out from a massive inverse head-and-shoulders pattern. The breakout is insanely bullish and marks the continuation of the coin’s rally. He further noted that though weekly H&S patterns are mostly unreliable, sometimes they come true.
In case you trade this (I don't)
Coin is enjoying SEC ruling and the madness of crowds
Weekly chart H&S patterns are too often not to believed. But sometimes they come true.
This possible inverted H&S with stunted RS would indicate prices a boat load higher (new ATHs). $XRP pic.twitter.com/TQdEV5j8Dv
— Peter Brandt (@PeterLBrandt) April 9, 2021
A weekly close above $0.75 cents would officially confirm the cryptocurrency’s bull market. Based on the height of the pattern, a breakout would catapult XRP to its lifetime high of $3.40 set in January of 2018.
As Brandt notes, the bullish price action is not the only catalyst that can send the XRP price higher. A recent court ruling in the SEC lawsuit tilted the scale in Ripple’s favor.
Unless you live under a rock, you must have heard that a federal judge recently granted Ripple’s motion to access the internal communications of the United States Securities and Exchange Commission (SEC) relating to how it identifies if a cryptocurrency is a security or not.
In December 2020, the SEC filed a lawsuit against Ripple, CEO Brad Garlinghouse, and Chairman Chris Larsen for selling unregistered security offerings and raking in millions worth of profit. As a result of the recent legal win, Brandt posits that XRP is basking in the “madness of the crowds”.
Despite the XRP chart being uber-bullish, Brandt still will not dip his toes into the asset. The classical chartist has openly expressed his skepticism towards XRP in the past, calling it a “manipulated scam”. He even asserted that the SEC should classify XRP as a security way before the regulatory agency had filed an official complaint.
Nonetheless, Brandt’s recent analysis on XRP is a clear about-face on the asset. Just days ago, he also identified another bullish signal explaining: “This is called a compound fulcrum and can be a quite powerful buy signal.”
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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.
