XRP price will fall to new lows vs. Bitcoin if this famous chart pattern plays out
XRP price bulls watch out! The popular Head and Shoulder pattern is statistically among the most accurate trend indicators.
Dubbed as Head and Shoulders (H&S), the pattern develops when an asset forms three peaks atop a common baseline. The outside peaks, known as Shoulders, are close in height, while the middle one, called the Head, is the highest.
The H&S pattern is completed when the asset breaks below its baselines support, with high volumes, confirming a negative breakout. The so-called neckline also serves as the most common entry point for bearish traders as they target deeper downside levels. Though not every time, an H&S pattern’s profit target comes to be equal to the distance between the pattern’s high point and its neckline.
Peter Brandt, CEO of Factor LLC — a global trading firm he established in 1980 — sees the XRP/BTC instrument painting an H&S pattern. In a tweet published early Friday, Brandt raised speculation that the bearish indicator might prompt XRP to turn into “a tidal wave” against Bitcoin.
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