A “head and shoulders” formation for XRP could spell significant losses, the veteran trader warns, as Bitcoin stays lower after its own 8% fall.
XRP traders may be in for further losses as one trader warned that a bearish price feature was yet to complete its impact on the market.
In a tweet on Feb. 20, Peter Brandt, well known as a trader of both cryptocurrency and traditional assets, said that a “head and shoulders” pattern in XRP/USD this month had the potential to send prices lower.
Brandt: “possibility” XRP goes to $0.20
XRP reached highs of almost $0.35 in recent days but subsequently fell conspicuously to press-time levels of close to $0.27.
“It will be interesting to see if this H&S top plays out. If so, the target would be 2071.”
The pattern played out over the course of February, with XRP/USD reaching $0.28 on Feb. 9, then falling briefly before climbing to the $0.35 highs on Feb. 15. After another dip, a fresh surge above $0.30 occurred on Wednesday this week.
Brandt added that he was not predicting XRP’s future, rather that the potential 25% losses were a “possibility.”
Ethereum “holding very well”
Brandt also shared brief but encouraging comments on the largest altcoin, Ether (ETH).
“It is holding very well,” he tweeted.
On the topic of Bitcoin (BTC), Brandt has yet to add to his already bullish stance. In an interview with Cointelegraph in January, he stated that BTC/USD would not return to $6,000 or lower, as “weak hands” were no longer in the game.
Bitcoin subsequently hit multi-month highs of $10,500, before similarly retracing its progress. On Wednesday, a sudden dive of 8% in minutes ruffled feathers among traders, with its exact cause still a matter of speculation.