Disclaimer: This article contains technical analysis, which is a methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. The content presented in this article is the opinion of the author. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence and consult with a financial advisor before making any investment decisions.
It’s been a tough year for XRP, as the cryptocurrency failed to garner any notable momentum throughout the early part of the year while cryptocurrencies like Bitcoin and Ethereum were busy putting a significant amount of distance between their recent late-2018 lows.
Although the aggregated crypto market lost its momentum this Summer and has been caught within a downtrend ever since most major cryptocurrencies are still trading up from their late-2018 lows. XRP, however, is an outlier, as it just recently set fresh post-2017 bull run lows.
This bearishness is showing no signs of slowing down anytime soon, as one analyst is now pointing to a bourgeoning technical formation that may signal XRP will drop another 20% in the near-term.
XRP trapped below $0.20 as bears continue walloping bulls
At the time of writing, XRP is trading down nominally at its current price of $0.19. The crypto has been struggling for the past several weeks to find support above $0.20, which appears to have become a resistance level.
In isolation, XRP’s recent price action can be characterized as nothing more than bearish, and this is further perpetuated by the precariousness seen while looking at Bitcoin’s recent price action.
Calmly, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes XRP is looking particularly “awful” against its BTC trading pair, which may soon see significantly further downside. He said:
“Ripple: Couple of the majors had strong weekly closes / opens. I’m still bear biased in this space, but I think it’s a tough call to short Bitcoin here. So I’m shorting the worst looking pair I see. XRP is giving me a short setup and the $XRPBTC chart is looking pretty awful,” he said while pointing to the chart seen below.
Image Courtesy of Calmly
Magic, another popular crypto analyst, corroborated Calmly’s analysis in a tweet, telling his followers that a bear flag breakdown could mean that the crypto will continue falling until it hits $0.15, which would mark an over 20% drop from its current prices.
“XRP is printing what appears to be a bear flag breakdown, which targets the bottom of a larger falling wedge on the daily around 0.15. The only problem is a bullish divergence, and BTC above critical support. If BTC loses the support again, XRP should hit the near 0.15 target,” he said, referencing the bear flag seen below.
The coming days will likely provide insight into whether or not this bearishness will spill into the new year, as a lack of any upward momentum in the coming week could mean that it could see further losses.
XRP, currently ranked #3 by market cap, is down 0.39% over the past 24 hours. XRP has a market cap of $8.27B with a 24 hour volume of $1.14B.
Chart by CryptoCompare
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