Peter Brandt, the Veteran Trader with over 40 years experience, who has never been positive on the price trend of the embattled digital token XRP has suddenly turned bullish.
In a tweet on 6th April, Brandt showcased his belief in a possible surge in the price of XRP against Bitcoin (BTC).
The commodity trader showed that the XRP/BTC pair has formed the extremely rare compound fulcrum pattern, which is used by point and figure chartists. According to Brandt, the chart is likely indicating a powerful buy signal.
Captioning a chart for illustration, Peter Brandt tweeted, “This is called a compound fulcrum and can be a quite powerful buy signal. Xrpbtc.”
— Peter Brandt (@PeterLBrandt) April 6, 2021
Explaining in a note dated back to 2015, Peter Brandt pointed out that compound fulcrum is a formation that can be spotted only once in a few years.
He said such a formation only appears for an asset that has been trending below for quite a long time, an illustration that perfectly fits the current situation of the digital token XRP.
Peter Brandt noted:
“The compound fulcrum is an extremely rare pattern. In fact, if a chartist diagnoses this pattern more than once every few years, the nit is being over-diagnosed.
“One can make the case that the daily chart of Silver is forming a legitimate compound fulcrum. The pattern itself—the compound fulcrum—actually originates in point and figure charting, not in classical charting principles.
“The compound fulcrum is always a bottom pattern—never a top. It occurs when a market forms a complex H&S top pattern after a prolonged and extended decline.”
Currently, XRP has retraced a bit below $1 resistance. At the time of filing this report, XRP is trading at $0.9678, with about an 11% price upsurge in the last 24 hours.