XRP’s rare compound fulcrum pattern signals a potential market bottom and supports a bullish price target of $4.40.
Peter Brandt highlights that failed bearish patterns often lead to stronger opposite moves when quickly invalidated.
A sudden spike in new XRP addresses indicates growing investor interest and aligns with bullish technical indicators.
XRP has formed a highly rare continuation pattern that could drive its price to $4.40, according to veteran trader Peter Brandt. This development follows a period of prolonged decline and comes after April’s failed breakout, which initially suggested bearish movement. Brandt now identifies the structure as a "compound fulcrum," a rare technical setup that historically signals market bottoms.
Brandt, known for his chart-based analysis, had previously viewed XRP's trajectory through a bearish lens. However, the invalidation of a head and shoulders top earlier this year has led to a reassessment. He now interprets the current structure as a bullish compound fulcrum. This reversal marks a notable change in tone from the analyst, who has emphasized that failed patterns often carry more meaning than completed ones.
Pattern Points to $4.40 Target, Says Brandt
Brandt projects a price move toward $4.40, which represents a 58% increase from current levels. This target is based on the implications of the compound fulcrum structure. The pattern typically forms at the end of an extended downtrend and includes a complex head and shoulders shape. Brandt clarified that his outlook will remain bullish unless XRP closes below this week's low.
On July 12, on-chain data revealed that 6,939 new XRP wallets were created in a single day. This surge in activity adds weight to the technical setup and suggests increasing investor interest. Market sentiment appears to be shifting in alignment with Brandt’s revised interpretation.
Failed April Breakout Adds Confidence to New Formation
April’s false breakout initially hinted at a downturn, but the quick invalidation of that move now lends support to the new bullish outlook. Brandt emphasized that the ability of XRP to recover swiftly from that false pattern adds credibility to the ongoing setup.
The current chart structure suggests a possible trend reversal for XRP. Brandt remains confident in the compound fulcrum's bullish implications, provided price levels stay above this week’s low. XRP's technical formation and increasing on-chain activity support this developing narrative, with a potential breakout to $4.40 on the horizon.
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