Peter Brandt said XRP has “a ton of overhead supply” to work through and named Monero as his favorite chart.
- Brandt said XRP has formed a cup-and-handle pattern on its daily chart, with a measured move to $2.16.
- He warned that the pattern could evolve into the right shoulder of a bearish head-and-shoulders formation, adding that targets “are not sacred.”
- The call comes as Evernorth, which expects to hold about 473 million XRP, prepares to debut on Nasdaq on October 8.
Veteran trader Peter Brandt sees a potential path for XRP toward $2.16, but the setup comes with a warning: a large amount of overhead supply could make the rally hard. The setup comes as another XRP-focused event approaches: Evernorth is expected to begin trading on Nasdaq on Oct. 8 under the ticker XRPN, with the company expecting to hold about 473 million XRP at closing.
Peter Brandt Maps A XRP Target
Brandt said on Tuesday that he had spotted a cup-and-handle pattern on the daily chart. On a larger timeframe, he said it could be the right shoulder of an adverse head-and-shoulders. He put the measured move at the $2.16 price target. That is the height of the inverse head-and-shoulders projected up from the breakout level on a daily close.
Brandt said he believes in "measured moves," but that targets “are not sacred." Charts often start as one pattern and turn into another. He said he called the right shoulder poorly formed and cut short. That suggests more development is likely for XRP.
The XRP Risk? Overhead Supply
Adding to why he is not so bullish, Brandt said his biggest worry is supply. XRP has "a ton of overhead supply” to work through, which he called a negative. Overhead supply refers to many holders who bought at higher prices and may sell when the price returns to break-even levels.
XRP’s price was down 1% over the past 24 hours, amid broader market weakness. XRP was among the top trending tickers on Stocktwits, with retail sentiment shifting to ‘bearish’ from the ‘neutral’ zone over the past day. However, chatter around it stayed at ‘low’ levels.
Why Is Peter Brandt Favoring Monero?
Brandt said he cares only about price, with the nearest marker for XRP being $1.66. He said he has little interest in the fundamentals of any coin other than Bitcoin (BTC), and he asked XRP fans not to take offense.
He also compared XRP with other coins over the same period. He said Monero (XMR) has absorbed all of its supply and has clear sailing ahead. He called it his favorite by far. He said Solana (SOL) shows a cup-and-handle pattern on a different level than XRP.
XMR’s price was up over 3% in the last 24 hours, defying broader market weakness. On Stocktwits, retail sentiment around XMR remained in the ‘bearish’ zone, accompanied by ‘low’ chatter levels over the past day.
Brandt added that Ethereum (ETH) also has heavy congestion, but not the same kind of overhead supply, while Stellar Lumens (XLM) has overhead supply too, but not on the scale that XRP has.
Evernorth’s Nasdaq Debut Could Put XRP in Focus
The macro traders' call on XRP comes as an XRP catalyst nears. First, shareholders of Armada Acquisition Corp.II approved a merger with Evernote Holdings Inc. at a September meeting.
The companies will trade under the ticker XRPN and are expected to begin trading on Nasdaq on October 8.Evernorth said the deal and related private placements have raised more than $1 billion.
The business combination is expected to bring in about $300 million in gross cash before expenses. This also includes $225 million from private placements, $30 million from convertible notes, and about $48 million from the Armada II trust account. Some investors also put in XRP instead of cash. At closing, Evernorth expects to hold about 473 million XRP.
The company said that would make it the largest publicly traded firm focused only on XRP. It plans to grow its XRP per share through staking, yield strategies, and capital markets activity.
Backers for the deal included Ripple, Kraken, SBI Group, GSR, and Arrington Capital. Evernorth said all of its funders remain committed to the expected closing.
The deal still needs to clear customary closing conditions and get Nasdaq listing approval. Buyers of the stock would own shares in the company, not XRP tokens. Investors’ returns would, however, depend on how the company executes its business as well as on the token's price.
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