Commodity trading vet Peter Brandt has some bad news for XRP holders. The third biggest cryptocurrency appears to be in the midst of completing a bearish head-and-shoulders (H&S) pattern.
If the most recent XRP rally ends up being an H&S top, there is a chance that its price could sink to just $0.2071.
It will be interesting to see if this H&S top plays out. If so, the target would be .2071.— Peter Brandt (@PeterLBrandt) February 20, 2020
This Tweet poses a possibility. This is not a prediction. pic.twitter.com/IJiMR2AEnV
XRP's underwhelming rally
After reaching its yearly high of $0.34 on Feb. 15, XRP has quickly erased those gains over the last few days. The cryptocurrency is down by more than 15 percent this week.
H&S is a popular reversal pattern that usually marks the beginning of a new downtrend, which justifies Brandt's $0.20 target. However, it is worth mentioning that one should wait for a clear confirmation before making any trading decision.
Ether is doing just fine
When asked to comment on Ethereum (ETH), Brandt tweeted that the leading altcoin was "holding up well."
It is holding very well— Peter Brandt (@PeterLBrandt) February 20, 2020
So far, Ether has been the biggest story of 2020. On Feb. 19, it reached a new yearly high of $286 before falling back to its support at the $260 price level.