Crypto trader Peter Brandt says payments-focused altcoin XRP could see more than 3x rallies if it breaks out of a bullish continuation pattern.
The experienced analyst tells his 768,200 followers on the social media platform
A bull flag is typically thought of as a bullish pattern, indicating that an asset is consolidating ahead of the potential for new rallies.
Says Brandt,
“Half-mast flags must be ready within six weeks, otherwise they should be viewed with great suspicion. This flag in XRP needs to rock and roll quickly or it will likely change to something else TBD (TBD). But when completed, a market cap of $500 billion is possible.”
Based on the trader’s chart, XRP appears to have entered its sixth week of consolidation within a bull flag, indicating that the clock is ticking before the altcoin can break out of the pattern. Should XRP break out and reach a market cap of $500 billion, this would translate to a price of $8.68, provided the supply remains the same.
At the time of writing, XRP is trading at $2.28 with a market cap of $131.11 billion.
Looking at Bitcoin, Brandt say that although BTC is showing a bearish head-and-shoulders pattern on the daily chart, it does not necessarily mean that a serious correction is in sight.
A head-and-shoulders pattern is a structure that suggests a trend reversal is in play after the asset fails to maintain its momentum to push higher prices.
According to Brandt, Bitcoin’s ability to hold above the pattern neckline at $90,600 could be an indication of BTC’s strength.
“The failure of a much-discussed pattern to develop properly tells me more about a market than the widely recognized pattern itself, BTC.”
At the time of writing, Bitcoin is trading at $96,876.
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Generated image: Midjourney
