Seasoned trader Peter Brandt is warning that the payments altcoin XRP is at risk of going through a massive capitulation event.
The legendary trader tells his 781,500 followers on the social media platform X that XRP is forming a head-and-shoulders (H&S) pattern on the daily chart.
An H&S structure is a bearish pattern indicating that an asset has lost momentum to sustain its uptrend after failing to print new highs.
According to Brandt, the bearish structure will be invalidated if XRP climbs above a key resistance level. Otherwise, he says XRP is in danger of breaking support at $1.90 and witnessing a waterfall event.
“Don’t shoot the messenger.
Your favorite Beanie Baby/Pet Rock crypto displays a classic complex H&S top. This could become bullish if $3.0 is exceeded, otherwise the implications are a decline to $1.07. If you have an issue with this, take it up with Magee and Edwards.
XRP.”
At time of writing, XRP is worth $2.12, down over 3% on the day.
Looking at Bitcoin, Brandt warns that BTC has broken down from a bearish continuation pattern after losing $85,000 and is now likely headed below $70,000.
“Don’t shoot the messenger.
Just reporting on what the chart says until it says something different. Bear wedge completed with 2x target from the double top at 65,635.”
At time of writing, BTC is worth $82,791.
As for the S&P 500, Brandt says that the stock market index is now in an “established downtrend” after flipping the 5,864 support level into resistance.
“The 2x target of 5,170 is a very appropriate 18% correction from the high.”
As of Friday’s close, the S&P 500 is hovering at 5,580 points.
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Generated Image: Midjourney
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