XRP price and the rest of the cryptocurrency market begun to underperform the market leader yet again
XRP price is not so bad as many analysts predict. There was even a short time last week, XRP sometimes surpassed Bitcoin. However, XRP and the altcoin market then returned to the downtrend.
XRP price post harrowing technical signs indicative of impending downside
Josh Olszewicz, a crypto analyst at Brave New Coin, said:
“According to the chart below, XRP/BTC is trading below two key levels: the 200-day exponential moving average and a horizontal support zone that has held for the past year.”
He later pointed out that the XRP price could fall much lower than the current price:
XRP:DOGE sat parity soon?$XRP article coming tomorrow for @bravenewcoin pic.twitter.com/y2249ucGEs
— Josh Olszewicz (@CarpeNoctom) May 27, 2020
Olszewicz joked, in response to the chart, referencing the small chance risk the altcoin falls to the price in Bitcoin of one Dogecoin. That would result in a drop of well over 90% of current market levels.
The skepticism on XRP’s chart was echoed by other market participants.
Mohit Sorout – a founding partner at Bitazu Capital – indicated a similarly bearish position earlier this month, also pointing at the loss of the horizontal support. Sorout isn’t the only one who is targeting some immense downside for XRP.
He said:
$XRP broke down from an year long range.
Short from 2200. Wouldn’t be surprised to see this at 1500 before June ends pic.twitter.com/1S7FVJUHKu
— Mohit Sorout ? (@singhsoro) May 14, 2020
In a recent blog post, respected trader Nik Patel explained that he is watching for a swift move to below $ 0.175, with this opening the gates for a falling to $ 0.125.
He explained:
“This break and turn occurred from an important area also: the 200-day moving average. If we start to see price reject from a retest of the underside of this area, I am expecting a swift move below $ 0.175 and then a retest of the range low at $ 0.125.”
The altcoin market is also on a strong downtrend
In addition to XRP, altcoins are also in a downtrend in the coming weeks and months due to fundamentals.
According to The lead technical analyst at crypto research firm Blockfyre, the altcoin market will struggle to move forward:
$ETH Eth heading for levels not seen since 2016. $LTC trading below 2014-2016 prices $XRP heading for levels from 2014, 2016, and 2017
The alt market looks like it could capitulate soon. Seems like the worst is yet to come but afterwards should provide huge opportunities pic.twitter.com/9IUGqDXnZd
— ₿ Pentoshi (@Pentosh1) May 14, 2020
The altcoin market dropped significantly last week, according to Jeff Dorman – CIO of crypto hedge fund Arca and an ex-trader at firms like Lehman Brothers and Merrill Lynch.
The fact that all large cap tokens fell too shows:
a) passive mkt-weighted indices are pointless
b) alpha comes from mid/small-caps that can differentiate, & catalyst-driven investments
c) Most digital assets are not necessary to own (particularly damaging for $ETH today).
— Jeff Dorman, CFA (@jdorman81) May 20, 2020
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