Since the peak of the cryptocurrency market in 2018, XRP has been a shadow of itself from the perspective of the chart.
Despite many technical developments, the token is currently trading 90% lower than the ATH of $ 3.30 - a far cry from the 67% of the ATH that Bitcoin has lost. Put simply, in regards to BTC, XRP is being over-sold and has been for months.
Unfortunately, the third largest cryptocurrency by market cap may suffer more losses, as analysts show that altcoin's technical outlook remains bleak.
The long-term prospect of XRP is quite grim
While XRP has recovered 70% from a low of around $ 0.11, its technical structure is still not considered to be a price rise, analysts said. A well-known analyst made this clear when he shared the chart below on April 13, emphasizing that XRP is in a bad position from a macro perspective.
The "double rejection" at important horizontal support areas and the fact that XRP is currently entering an area with little historical liquidity, both are depicted in the chart, the trader said:
“This is probably one of the scariest charts I've ever seen. I would not want to hodl it too much ”.
Before that, Peter Brandt had shown that all that exists for XRP is just whitespace, suggesting that tokens are easier to plunge rather than raise.
However, not just the bad news. In particular, it has witnessed less selling pressure and XRP continues to see use in institutional fintech products, which could boost its adoption and price.
Data for Q1 2020 is not yet available, but fintech firm Ripple - which uses XRP in its organizational products to act as a means of payment - claims to have sold fewer tokens.
The chart below from the data provider Messari paints a picture of this trend, showing the number of coins that Ripple is selling off plummeted from Q2 2019 to Q3 and Q4 and the same year.
Moreover, Ripple continues to use XRP in its flagship product, ODL, using cryptocurrencies as a bridge to connect the global foreign exchange market between banks. The product benefits from the speed of the XRP backing ledger, offering relatively fast and cheap transaction times when compared to traditional payments.
Unfortunately for XRP hodlers, it is unclear whether the reduced market supply and increased demand can make up for the token sale being affected over the past few years.
You can see the price of XRP here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Bitcoinist
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