HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Holding Ripple’s XRP is “Not an Effective Strategy,” Argues Top Analyst

Altcoins 2020/06/03 15:15 by Yashu Gola
XRP, the underlying token of the Ripple’s flagship blockchain, is not a practical cryptocurrency for holding, said a top market analyst. The statements appeared in the wake of XRP’s dismissive performance in 2020 against its better-performing rivals, such as bitcoin. The analyst said the Ripple token could fall by another 50 percent before it pursues a retracement price rally. Holding XRP is not an effective strategy, says a top cryptocurrency analyst. The Ripple blockchain’s native asset is down by more than 91 percent from its all-time high, explained the pseudonymous trader, adding that it could fall by another 50 percent from its current levels. He took his cues from a pre-2017 fractal that recorded XRP slipping by almost 95 percent from its then-local top.   XRPBTC performance since 2015 | Source: Ethereum Jack While each of XRP’s top rival was trading lower from its respective all-time high, the Ripple token so far showed the worst recovery. For instance, in dollar terms, bitcoin as on June 3 was trading 52.13 percent below its all-time high of $20,000. In comparison, XRP was down by 94 percent. “Clearly, the chart shows that hodling XRP is not an effective strategy,” said the analyst. “I don’t know how anyone can argue about that. Buying when the market resets after a long deep retrace and shows strength has been a good strategy but you have to sell it.” XRP/BTC Targets The trader suggested two outcomes out of the XRP’s ongoing trend. First, the coin could blow off its weekly top above 2,300 sats and confirm an upward price rally. Second, it could continue falling lower until it completes a 95 percent retrace from its all-time high of 23,924 sats. “Until then,” he added, “who knows what can happen, currently down 91% since ATH but has seen 95% drops before, which is close to another 50% dropdown. So move slow.” Both the cases pointed to a potential pullback on the XRP/BTC charts. The pair is now trading near its worst levels since December 2017. While that could mean that XRP/BTC is bottoming out anytime, it nevertheless exposes XRP as a weaker cryptocurrency than its top rival Bitcoin. What’s Next for XRP In comparison, XRP is faring better in the dollar-pegged markets. At 5.66 percent YTD gains, the Ripple token is trading higher but remains stuck under strict resistance areas, such as the one shown in the chart below. XRPUSD has surged by more than 100 percent since March 2020 | Source: TradingView.com, BitStamp XRP/USD is testing its 200-daily moving average (orange) for an initial breakout towards $0.226. Meanwhile, its upside bias is receiving support from a rising trendline (black). The fractal is similar to that of Bitcoin, showing that XRP may be just tailing the top crypto’s gains. Holding XRP in dollar-terms has returned great profits since March 2020. But given the cryptocurrency’s underlying investment risks, such as a class-action lawsuit alleging it is a security token, could undermine investors’ bullish sentiment.

0 Like(s)



You should also read...

Altcoins 01/06/20 23:00 by Cole Petersen
Ripple Unlocks 500 Million XRP as Analysts Point to Immense Weakness
XRP has been trapped around $0.20 for the past several weeks, caught within a strikingly firm consolidation channel that has given it little room to make any notable movements. This has made its trend...
Read More
Altcoins 07/07/20 01:00 by Tony Spilotro
Three Signs That XRP Has Finally Found It’s Bear Market Bottom
XRP continues to sink, as does the stomachs of investors who have held the altcoin as a loss for over two years running. All that loss and suffering could soon come to an end, due to a number of signa...
Read More
Altcoins 17/12/20 12:20 by Yashu Gola
Ripple (XRP) Swells 24% After Bitcoin Record High; More Gains Ahead?
Ripple’s native token XRP is looking bullish again. Psychology The fourth-largest cryptocurrency by market capitalization was among the best performers Thursday as its price swelled by almost 24...
Read More
Crypto 27/02/21 10:13 by Guest Author
What are the risks of trading cryptocurrencies?
Investing in crypto can be risky – especially if an investor’s expectations are removed from reality. In addition to risk factors like regulations, the cryptocurrency development space is ...
Read More
Altcoins 22/03/21 14:00 by Yashu Gola
Ripple’s XRP Hits One-Month High on Exchange Re-Listing Prospect
Ripple’s native blockchain asset XRP surged to its one-month high on Monday as traders grappled with the prospects of its re-listing on cryptocurrency exchanges. The seventh-largest cryptocurren...
Read More