Data regarding XRP price aggregated cost basis shows many investors are down 86%

By Selena On Jun 18, 2020

XRP price is fluctuating around $ 0.1924, constantly stuck in the intense bear market during the past. While Bitcoin and many other cryptocurrencies were able to recover most of the losses, XRP is still down about 95% from its high.

XRPUSD 4 hours chart | Source: Tradingview

The majority of investors are also deep in their XRP price and investments

Data regarding the cryptocurrency’s aggregated cost basis has also decreased significantly, which is closely related to the degrading technical strength. And for some analysts, this is a major drawback for XRP. And this weakness is even more apparent when it comes to the BTC / XRP trading pair. Even the pair may soon drop another 30% or more.

This decline will put embattled XRP investors in a difficult position because their holding value will have all but evaporated during the recent downtrend. And also because of a massive cost basis, the number of XRP investors also dropped significantly, up to 86%.

During the peak of the cryptocurrency market in late 2017 and the first few weeks of 2018, XRP was able to soar to $ 3.80. However, its rise to a high is short-lived, as this is where it finds great resistance that makes it begin to go down for years, eventually leading to a low in the area below $ 0.10. in March.

Much of the rise in XRP is rooted in speculation that Ripple’s xRapid payment solution will attract a large amount of investment in XRP. However, investors have not seen too much remarkable progress on this front. This has led to an XRP sell-off or withdrawal from investing in the fourth largest cryptocurrency in this market.

Messari researcher Ryan Watkins said:

While not a lot of Bitcoin traded near Bitcoin’s all-time high, the same can’t be said for XRP. Despite XRP having only closed above $ 1.00 on just 2.1% of its trading days, XRP’s aggregate estimated cost basis is $ 1.38. This suggests most XRP Investors are deeply in the red.”

Source: Messari

Meanwhile, professional trader Peter Brandt recently explained that he predicts XRP will see significant weakness in the coming weeks and months.

Peter Brandt TradingView Chart

He said:

“Looks like Ripple Labs has blown the wad allocated to support XRPBTC at .00002060 to .0002075 levels. If ice-line cannot be reclaimed, look for new support at .0000194 on way to .0000145.”

You can also check XRP Pricae here.

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