Trader Jacob Canfield apparently thinks that XRP, the third biggest cryptocurrency, could soon witness another sell-off.
Canfield recently noticed that XRP was lagging behind Bitcoin and other major cryptocurrencies, which made its price action painful to look at.
The Damocles’ sword hanging over XRP
As the graph below shows, the token is still trapped within a large descending triangle that is formed when an asset makes a series of lower highs. Meanwhile, the horizontal line of the triangle represents the current level of support.
Descending triangles can resolve in both bearish and bullish directions. However, at this point, it seems likely that the XRP price will break below the lower support, which will very almost certainly result in another price crash.
Over the last 24 hours, XRP has plunged 2.53 percent against BTC. The token is failing to move the needle at $0.232, CoinStats data shows.
Will XRP recover in 2020?
Ripple’s XRP sales dropped by more than 80 percent in Q4 2019, which is attributed to the company’s decision to halt programmatic sales. This could eventually lead to the much-awaited price recovery since the aggressive selling of XRP by Ripple Labs has been one of the strongest bear narratives.
Even despite its grim technical picture, American economist Jeffrey Tucker is certain that XRP is an important technology that has a lot of upside potential.