In a recent analysis, seasoned investor Peter Brandt has focused on the latest price structure of XRP, the digital asset used in Ripple‘s payment ecosystem. Brandt, known for his technical expertise, unveiled a chart suggesting a potential continuation pattern resembling a cup and handle formation. The pivotal level spotlighted is $1.6572, which market participants are now closely monitoring.
Price Structure Nears a Crucial Threshold
XRP has recently rebounded from its August lows near the $1.00 mark and is now trading approximately at $1.52. The initial segment of the structure formed during a robust rally in August, bringing the price close to $1.70. However, a broad correction followed, pulling XRP back to the $1.27 region by mid-September.
The subsequent recovery phase has captured more attention from a technical standpoint. XRP quickly advanced again to the $1.60 to $1.65 range, subsequently stabilizing around $1.50. This consolidation area serves as the ‘handle’ of the potential cup and handle formation. Nevertheless, analysts note that this formation remains unconfirmed until the $1.6572 level is surpassed.
Peter Brandt’s chart suggests a possible cup and handle pattern in XRP, cautioning that without clearing $1.6572, this is not a confirmed signal.
Technical Indicators Support the Outlook
The daily chart offers a scenario that hasn’t entirely dismissed the bullish outlook. XRP continues to stay above the key supports around $1.45 and the longer-term moving averages between $1.35 and $1.40. The breakout from the downward trendline that had suppressed the price throughout September marks a significant shift in the technical perspective.
Momentum indicators also present a balanced outlook. The Relative Strength Index (RSI) has not yet returned to the overbought territory evident during August’s strong ascent. This suggests that there is space for buyers to maneuver, should a new uptrend emerge.
Focus on Seller-Guarded Zone
Conversely, the $1.65 to $1.66 range continues to act as a significant barrier. In this zone, XRP encountered resistance multiple times, evident from the upper wicks on the candles, indicating sustained seller activity. A definitive breakout above $1.6572 on a daily closing basis could reignite interest in the August peak of $1.70, with the $2.00 level also becoming pertinent from a psychological standpoint.
Should XRP fail to breach the $1.65 mark, it is expected to remain within its current channel, with the $1.48 to $1.50 zone emerging as initial support.
If an upward breakout does not materialize, XRP is likely to stay confined within its present range. The immediate support sits between $1.48 and $1.50, with $1.45 as another critical level below. A breach of these areas could weaken the emerging handle structure, potentially exposing the price to the $1.35 to $1.40 bands again.
Presently, the scenario outlined by Brandt represents more of a setup awaiting a trigger level rather than a definitive technical signal. Market attention in the short term remains focused on the $1.65 threshold.
