XRP’s Price Outlook Harrowing
Over the past 24 hours, Bitcoin (BTC) has finally shown signs of life, jumping from $7,100, where it ranged for days on end, to $7,600. Despite this strong price action, analysts aren’t convinced that altcoins will fare will in the coming days.
Full-time crypto asset trader Calmly, for instance, recently opined that he thinks while he thinks it’s “a tough call to short Bitcoin here,” he has noticed that XRP’s charts are looking rather harrowing.
He first drew attention to the XRP/USD chart, which shows that the asset was cleanly rejected by a historical resistance at $0.20, creating a Swing Failure Pattern. This often results in reversals; in this case, the SFP implies that XRP is poised to fall by upwards of 5%.
Calmly then eyed the XRP/BTC chart, remarking that it’s looking pretty awful and, as such, could fall by 15% in the coming months.
#Ripple: Couple of the majors had strong weekly closes / opens
I'm still bear biased in this space, but I think it's a tough call to short #Bitcoin here. So I'm shorting the worst looking pair I see$XRP is giving me a short setup and the $XRPBTC chart is looking pretty awful pic.twitter.com/Nw5EOns7aN
— Calmly | full-time trader (@im_calmly) December 23, 2019
It isn’t only Calmly who is expecting XRP’s outlook to get even more harrowing over the coming days.
According to prominent cryptocurrency trader and commentator Jacob Canfield, it may still be a ways to go before it makes sense to even try investing in the cryptocurrency for the long haul. He even went as far as to say that one of his achievements over the past few years is telling his friends and family to not buy XRP in 2018 and 2019 due to the technical outlook on the charts.
Canfield added that to even think of considering recommending a long, he would wait until the cryptocurrency trades at $0.10 to $0.15 — 50% to 25% lower than current prices.
In terms of the XRP/BTC chart, Canfield later remarked that the asset lost the support of the 20-week simple moving average after trying to hold it as support for weeks. He notes that if this level breaks down, he expects for the XRP/BTC to fall “much lower.”
Bulls Have Any Hope?
Not all is lost for Ripple, though.
Per previous reports from this very outlet, the fintech company recently completed a massive funding round, a Series C. The investment, $200 million — sourced from global investment firm Tetragon, Japanese finance-centric conglomerate SBI, and Route 66 Ventures.
While the raise is notable in and of itself, an important of this tidbit of news is that Ripple raised this capital at a rather high valuation. A valuation of $10 billion, to be exact.
The reason: Garlinghouse was quoted as telling Fortune that Ripple’s latest funding round — a Series C for those wondering — saw a high level of investor interest in the crypto-centric company, allowing for high valuations to be set.
This seemingly means that there remains a demand for Ripple and XRP-related products, despite what the price chart of the cryptocurrency implies.
Photo by Johannes Plenio on Unsplash