Ripple suddenly locked 900 million XRP, will token price increase?
XRP, the digital asset of Ripple and the third-largest cryptocurrency, became one of the worst-performing coins in 2019 when the price dropped by nearly 99% from the 2018 peak. It not only closed the year of losses but also established a new bear market.
As AZCoin News reported, when 2020 just started, Ripple Escrow transferred 200 million XRP from the escrow wallet to an address owned by Ripple Labs, fintech companies use cryptocurrencies and corresponding ledgers to improve financial services. Almost immediately after, Ripple Escrow opened 1 billion XRP.
About 48 hours after unlocking, Ripple Escrow transferred 900M XRP to Ripple and locked the same amount in escrow at Ripple.
Source: Whale Alert/ Twitter
Despite these unusual moves, the XRP price remains fairly stable within the range of $ 0.185 – $ 0.19.
XRP is likely to expand more pains
Regardless of whether Ripple will continue to liquidate that XRP to fund its operations,
Analysts say the company is likely to push the token into a long-term downtrend.
Bully, a famous crypto commentator, posted a tweet about one of the escrow-related transactions, continuing the crusade against Ripple’s dumping of XRP against retail investors.
Meanwhile, Mati Greenspan, founder of Quantum Economics, explained in a recent tweet that XRP tokenomics is not conducive to its potential for the price hike.
Yes. XRP tokenomics is a bit funny that way. The two main issues…
1. Ripple holding a large portion of tokens and selling into the rallies.
2. Usage of the network does not necessarily require XRP tokens. Banks can use Ripplenet w/o ever touching the token. https://t.co/oDM2dO1vhV
— Mati Greenspan [tweets are not trading advice] (@MatiGreenspan) December 29, 2019
According to other analysts, the losses of XRP will likely continue to expand, as the token seems ready to breakdown from a two-week-long bear pennant, making the price of tokens more likely to plunge even possibly to lows not seen in years.
According to popular analyst Livercoin, XRP has been trading in a bear trend for the past two weeks and appears to have closed a 4H candle outside the bottom support trend line, and now confirming the trend line as support flipped resistance.
— Livercoin (@livercoin) January 2, 2020
If XRP confirms resistance at the current price, the price is likely to fall even as low as 13 cents per token.
Although the bear pennant pattern has a strong downward trend, it can really disrupt the uptrend. Therefore, the XRP bulls are not completely in danger until the old support is confirmed as resistance. Throughout 2019, the XRP price has been pushed lower by the repeated appearance of bear pennant chart patterns. However, one of them broke the pattern, initiating a brief demonstration.
Source: Trading View
XRP needs to hold $ 0.14 to turn up
However, there is still an opportunity for XRP to turn around. Trader Crypto Michaël has asserted that as long as XRP retains the range of $ 0.14 – $ 0.17, a stronger rally could occur.
The trader noted that XRP’s current price action is very similar to the bottoming pattern seen in December 2015 and January 2016, followed by a spike in pre-crash levels.
The large downward trends on altcoin charts are on the verge of broken down, paving the way for a strong reversal of the uptrend.
Still seeing many similarities to the period in December ’15.
Massive downtrends ready to be broken down.
— Crypto Michaël (@CryptoMichNL) December 31, 2019
If the range of $ 0.14- $ 0.17 can be sustained, the price of XRP could rise as high as $ 0.473 by mid-2020, equivalent to a 175% increase from the current price.
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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