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Veteran trader Peter Brandt has set a potential price target for XRP at $2.16.
The trader believes there is an emerging technical formation that could lead to the aforementioned bullish price target for the cryptocurrency.
A promising pattern
The seasoned chartist stated he is seeing a cup-and-handle technical formation on the XRP chart.
On a larger timeframe, it could also be the right shoulder of an inverse head-and-shoulders pattern.
Brandt says XRP price could hit $2.16 if the emerging technical pattern he's tracking ends up playing out.
He set a potential $2.16 price target based on taking the height of this inverse head-and-shoulders formation on a daily closing price chart and extending it upwards.
Given that XRP is currently trading near $1.50, it would mean the token would need to rally around 44% for it to hit Brandt's potential price target.
However, technical patterns often don't hit their initial targets or sometimes transform into something entirely different.
The veteran trader explained he is a believer in the idea of "measured moves."
Brandt also noted that this potential right shoulder of the technical pattern is "poorly formed" and "abbreviated." This could indicate that more of the right shoulder is still forming, but not necessarily.
Major XRP obstacle
Brandt also pointed to a major obstacle for the bulls with XRP price: a lot of overhead supply.
Looking at a weekly chart, Brandt pointed out that XRP price is well off the major peaks from the previous rally. There could be a lot of holders at higher price levels that could sell as XRP goes higher, forming resistance.
"There is a TON of overhead supply to go through," said Brandt. He called it a negative for XRP.
The trader compared XRP to a number of other major cryptocurrencies. He claimed that Monero (XMR) has already worked through a lot of its overhead supply. He also said Solana shows a much better-looking cup-and-handle technical formation.
At the time of writing, XRP is trading around $1.50 and has a market cap of around $94.65 billion, per the provided CoinGecko data. Over the past month, XRP is up around 5.5%.