XRP prices were slashed to levels not seen since May 2017. Despite the already painful sell-off, one prominent crypto analyst estimates that Ripple’s main asset could enter free fall.
XRP Holding on to Thin Air
Peter Brandt, a 45-years trading veteran, recently said that XRP is sitting on top of “white space.” Looking at prices since August 2016, Brandt shows there are no support levels that could help XRP if there’s a further decline.
The lack of support is a result of price action following its $3.3 peak in January 2018. Since then, the coin entered a relentless downtrend, destroying 96% of its value.
Another way to look at it, according to Brandt, “almost everyone who has bought XRP since May 2017 has a loss.”
Although he didn’t predict the exact price trajectory of XRP, he is not optimistic. Brandt pointed out that “XRP is not a true crypto.” Instead, he explained that it could serve as a financial instrument for those who believe “crypto is a religion.”
Regardless of its status, XRP could bounce back. It seems like its price action was contained in a descending parallel channel since mid-February. These patterns contain the price action of a coin within the upper and lower bounds of the channel.
A further increase in buying pressure could push Ripple’s coin to the middle or upper boundary of its channel. These support barriers sit at $0.17 and $0.2, respectively.
It’s worth noting that a spike in volume could ignite another sell-off, adding credence to Brandt’s bearish position.
If this happens, Ripple’s cryptocurrency should prepare to make a new low. On its way down, the next levels of support to watch out for sit at $0.03 and $0.01, representing a 70-90% price drop.
Even Ripple’s notoriously rabid investor-base is concerned by the possibility of a large drop. Tiffany Hayden, previously one of its most passionate supporters, sold her holdings and disassociated herself with the community.
XRP needs momentum, and soon, or it could end in disaster for bag holders.