Altcoins
XRP Shatters Crucial Macro Support as Analysts Eye Serious Downside
Cole Petersen | May 08, 2020 | 20:00
- XRP has continued to severely underperform Bitcoin, forcing it to also see some downside against its USD trading pair despite the bullish market conditions
- This weakness has caused the third-largest crypto to decline beneath a key last-ditch support level that was bolstering its price action
- Analysts are now noting that it could soon see a freefall that leads it significantly lower due to the weakness resulting from this dire technical breakdown
Yesterday the aggregated crypto market saw some immense bullishness. Bitcoin’s rally to $10,000 allowed some altcoins to capture a fraction of this momentum, although XRP actually declined over the same trading period.
It now appears that yesterday’s lackluster price action caused the third-largest digital asset to decline below a key support level that was previously bolstering its price action.
This breakdown is leading analysts to foresee serious blood in the days and weeks ahead, with some even calling the embattled token a “dead end.”
XRP Struggles to Gain Momentum as Bitcoin Trading Pair Flashes Major Signs of Weakness
At the time of writing, XRP is trading up marginally against its USD trading pair at its current price of $0.217, down from daily highs of just over $0.22 that were set yesterday.
The serious weakness expressed by the token can be seen more clearly while looking towards its BTC trading pair.
It is currently down nearly 6% against Bitcoin, marking a severe underperformance of the benchmark crypto that has forced it to decline beneath what was a previously strong support level.
One popular analyst offered a chart elucidating the breakdown below support that this latest decline against BTC has caused for XRP as well as EOS – another major altcoin.
Image Courtesy of Livercoin
Because of the immense weakness it is currently flashing against Bitcoin, it is highly likely that this will also create some drag that causes it to see weakness against its USD trading pair.
Veteran Trader Calls the Token a “Dead End” Following Technical Breakdown
The aforementioned analyst isn’t the only one who noticed the dire technical situation caused by XRP’s latest decline against Bitcoin.
Well respected veteran trader Peter Brandt also spoke about XRP, explaining that although he is now bullish on both Bitcoin and Ethereum, he believes the token is a “dead end.”
He points to the crypto’s “manipulated market” as a reason to support this claim – likely a reference to Ripple’s heavy involvement with the cryptocurrency from a market-perspective.
“In 45 years as a career market speculator, I’ve come to discern the real deals from the possible scams. I’ve only attempted to warn people that XRP is a manipulated market & a dead end,” he explained.
Image Courtesy of Peter Brandt
Unless the crypto posts a major upswing that allows it to reclaim the key support that it just lost on its BTC trading pair, it is a strong possibility that it will see further blood in the days and weeks ahead.
Featured image from Unplash.
