Like the rest of the cryptocurrency market, XRP is also seeing an active retracement that is taking its price back to levels not seen since last year. This retracement is expected to be short-lived, as expectations grow for the approval of a potential Bitcoin spot ETF this week. However, not everyone is optimistic about a potential recovery, as one cryptocurrency analyst predicts that altcoin prices will suffer a major crash in the coming days.
XRP Massive Bear Flag Appears
Crypto analyst Bitgolder took to TradingView to share a very bearish analysis on the XRP price. This analysis identifies the presence of a bear flag, one of the worst flags seen on altcoin charts recently.
As Bitgolder explains, the XRP price chart looks very bad, leading to an obvious bearish flag. Part of the reason for the formation of this bear flag is due to the fact that there was a decrease in trading volume last week and a decrease in investor interest as altcoins failed to live up to expectations after Judge Analisa Torres’ ruling. Programmatic XRP sales are not considered securities.
The cryptocurrency analyst explained that the recent price rebound seen by the coin price over the past few weeks was not really optimistic. Rather, this is “just an extended bounce to wave B of this correction at the top of XRP.” Analysts are also convinced of the weakness that XRP represents. This is especially true considering the fact that altcoins failed to hit all-time highs during the last bull market while other coins rebounded.
Bitgolder warns investors of a slow hemorrhage in the price of XRP, despite how optimistic the community appears to be. “It’s going to take a while to bleed because there are so many bag holders and stupid YouTubers keep pumping this stuff out,” Bitgolder warned. “It’s unfortunate that a lot of people are losing their shirts over this.”
Token price struggles below $0.6 | Source: XRPUSD on Tradingview.com
Prices plummet to ‘single-digit pennies’
Following the slow bleeding predicted by Bitgolder, the analyst also expects further dumps that could push prices down to single-digit pennies. The chart shared in the analysis shows an initial drop to $0.39. However, further dumps brought the price of XRP down to $0.07.
Source: Tradingview.com
According to analysts, the reason for this dump may be that the US Securities and Exchange Commission (SEC) will eventually win against Ripple in court. Bitgolder believes that XRP will eventually be considered an unregistered security. Otherwise, the US SEC will file another lawsuit against cryptocurrency companies, which will eventually cause investors to lose confidence and dump their coins.
I used to think that XRP could do amazing things, but after doing more research and examining chain indicators, I am convinced that this was the biggest pump and dump in history.
However, the analyst also points out that a downtrend may not occur immediately as XRP could bounce once again to the $0.7 area, which is the high point of the bearish flag. However, Bitgolder calls this surge a takeaway that once again pulls the rug out from investors. “We are currently facing very strong resistance, so we are not sure if we will actually be able to break through it,” the analyst concluded.
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