Veteran commodity trader and chartist Peter Brandt posted on social media platform X this week, pointing to a bullish 'massive coil' pattern forming on XRP's price chart. He suggested the cryptocurrency could be on the verge of a powerful breakout, sparking widespread debate within the crypto community.
Understanding the 'Massive Coil' Pattern
Brandt described the 'massive coil' as a technical analysis configuration where price consolidates within a narrowing range, resembling a wedge or triangle. This pattern often precedes a sharp directional move. He specifically noted that XRP has already surpassed its 2023 high, a significant technical milestone that signals strong bullish momentum. Breaking annual highs typically attracts additional buying interest and reinforces confidence among traders. Brandt also identified XRP's 2021 all-time high as a critical resistance level, implying that a move above that mark could trigger an explosive rally — he used rocket emojis in his post to emphasize the upside potential.
Personal Stance and Clarification
Despite the bullish technical outlook, Brandt made it clear that he is not personally long XRP. In a follow-up post, he stated, 'I am NOT long XRP and have no plans to buy XRP.' He disclosed that his current crypto holdings include Bitcoin (BTC) and Solana (SOL). Brandt acknowledged his longstanding skepticism of Ripple Labs, insisting that his analysis of XRP was purely technical and not an endorsement of the asset. This distinction between technical observation and personal investment has drawn attention in the market.
Legal Uncertainty and Regulatory Shifts
XRP's legal saga remains a key overhang. The U.S. SEC sued Ripple in 2020, alleging unregistered securities offerings. A 2023 ruling determined that XRP is not a security when sold to retail investors, but institutional sales constituted securities — resulting in penalties. The SEC's appeal keeps the case unresolved. In response to a question about whether XRP would still be deemed a security under a Trump administration, Brandt replied: 'Probably not under Trump without Gensler.' This comment highlights the potential for a more favorable regulatory environment if SEC Chair Gary Gensler departs.
Political Tailwinds
President-elect Donald Trump has vowed to make the U.S. the 'crypto capital of the world' and proposed creating a strategic Bitcoin reserve. He also pledged to remove SEC Chair Gary Gensler on his first day in office, though speculation suggests Gensler might resign voluntarily before Trump's inauguration. Brandt's remarks tie XRP's legal outlook directly to these political changes, fueling hopes for regulatory clarity. The prospect of a Trump administration has already boosted XRP's price performance relative to other major cryptocurrencies.
Overall, Brandt's technical analysis provides a bullish short-term narrative for XRP, but the cryptocurrency's trajectory remains closely tied to SEC litigation and political developments. Traders should monitor the case's progress and Trump's actual policy implementation after taking office.