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Although all cryptocurrencies have had it tough over the past few weeks, XRP has been hit especially hard. The altcoin, the third-largest crypto asset by market capitalization, fell as low as $0.105 on Thursday from its 2020 high of $0.345 established just weeks earlier, marking a drop of 70%.
Despite this brutal performance, a veteran cryptocurrency trader is warning that XRP may be on the verge of falling even further in the coming weeks and months.
Does XRP Price Have Further to Fall?
Veteran commodities trader Peter Brandt, who has embraced digital assets, recently posted the below chart to Twitter, writing:
I said I would never again post a chart of XRP. But, I thought you all might be interested in what it means to have ‘White Space below’.
While he didn’t convey a price prediction for the cryptocurrency, the comments in response to this tweet quickly filled in the gaps; what he depicted was that there is seemingly no price support for XRP until it returns from whence it came, as the cryptocurrency has decisively fallen below a number of moving averages and key support levels.
I am breaking a promise.
I said I would never again post a chart of $XRP
But, I thought you all might be interested in what it means to have …
"While space below" pic.twitter.com/Pse2DkEXfp
— Peter Brandt (@PeterLBrandt) March 12, 2020
Brandt’s tacit warning against XRP’s future prospects comes shortly after he explained that if he looks at the chart of Bitcoin “without bias,” he sees a “sub-$1,000” price, which would require BTC to drop at least 83% from the current price of $5,700.
It isn’t clear if his belief that Bitcoin will reach $50,000 and above with time is invalidated, though the price of the asset recently dropped below one of the long-term growth lines he has drawn on his charts, not boding well for bulls.
Bitcoin Bounce Could Save the Altcoin
Fortunately, analysts currently see a bull case forming for Bitcoin, meaning that XRP, too, could soon find some bid, at least in the short term.
Trader CJ remarked that there are more reasons to be bullish on Bitcoin than bearish, noting the cryptocurrency has started to trade above a “swing low pivot,” diagonal support that has supported the price since the flash bottom, the 0.75 level of the range, while prices consolidate below resistance.
There are other analysts bullish too. Filb Filb, for instance, pointed to three reasons why Bitcoin could squeeze higher: the short-term chart has formed a textbook Adam and Eve bottom, the funding rate in BitMEX is favoring a bullish reversal, and the bid side of the orderbook has started to stack up again in an act that indicates buying support.
Featured Image from Shutterstock
