- Ripple has been in a brutal downtrend for nearly two years.
- Trader Peter Brandt predicts that the cryptocurrency will bottom out as soon as it completes the diamond pattern.
- Other traders are bullish on XRP as the cryptocurrency posts a solid rally to take out the resistance level mentioned by Brandt.
Ripple’s XRP has been in a downtrend for almost two years. The third-largest cryptocurrency posted an all-time high of $3.30 in January 2018. Since then, investors have experienced nothing but pain. To add insult to the injury, Ripple Labs has reportedly earned over $533 million in 2018 by selling pre-mined XRP.
As of today, the crypto token has lost over 90% of its value from the peak. However, it appears that the worst is behind it.
Peter Brandt, the trader with the most following on Twitter, believes that Ripple is about to bottom out soon. If he is correct, the cryptocurrency is likely to be in a position to pump before the much-awaited Swell event.
Brandt: ‘If You Want to See What a Very Clean Diamond Looks Like, See XRP’
A diamond pattern is a reversal pattern that’s not often seen in traditional assets like stocks and commodities. However, it has already made a couple of appearances this year in cryptocurrencies. The first one was early this year when bitcoin bottomed out at $3,000.
The second diamond bottom appears to be forming in Ripple’s daily chart, according to Brandt.
In a follow-up tweet, the trader noted that the key level to take out is $0.3038. A move above that price area completes the pattern with a target of $0.46912. In other words, Brandt expects Ripple to skyrocket by more than 54% after the breakout.
Over the last few days, the crypto token has been knocking on the doors of $0.3038. As of this writing, Ripple has finally moved above the resistance and appears to have completed the pattern.
Other Widely-Followed Traders are Bullish
Brandt is not alone in seeing the possibility of Ripple finally reversing its trend. For instance, CryptoGainz sees an inverse head-and-shoulders reversal pattern forming in Ripple. According to the trader, a move above $0.3077 will ignite bullish momentum.
Trader Loma is also seeing bullish price action on the cryptocurrency. The trader sees a breakout as soon as Ripple breaches the diagonal resistance of $0.30.
In addition, XRP-supported Sir Gordon Gecko believes that the cryptocurrency has finally left bear territory. The analyst took to Twitter to share a chart of Ripple finally completing the diamond bottom pattern.
The key for XRP now is to stay above $0.3038. If it does, there will likely be a lot of happy XRP HODLers in the Swell conference.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
This article was edited by Sam Bourgi.
Last modified: October 29, 2019 14:08 UTC