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The Ripple-linked XRP token has been picked as a top short candidate by prominent commodity trader Peter Brandt.
That said, Brandt says that it is conditional upon the completion of the descending triangle pattern.
The chart shared by the famed trader shows that the lower horizontal support line is at approximately $2.68, meaning that this level tends to attract relatively strong demand from buyers.
However, the upper descending resistance line shows that sellers shows that buying pressure is gradually weakening.
Now that the two lines are converging, they are creating the triangle shape that might spell trouble for XRP bulls.
As reported by U.Today, Brandt previously predicted that XRP could collapse all the way to $2.2 if the aforementioned bearish pattern ends up paying out. This would be quite a big setback for the bulls, given that XRP has not seen that level since early July.
XRP's underwhelming performance
XRP is up by a rather modest 34% in 2024 after soaring by as much as 238% last year.
After reaching its current all-time peak of $3.66 in July, the Ripple-linked token has been struggling to regain its momentum, forming a series of lower highs on its daily chart. Hence, it is not entirely surprising that XRP has emerged as an attractive target for shorting.
At press time, the Ripple-linked token is changing hands at $2.79 after dipping by more than 3%.
As reported by U.Today, XRP recently slipped out of the top 3, with BNB taking its spot.
According to CoinGecko data, the token is currently in fifth place, with its market cap standing at $167 billion.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team