Crypto analyst and BlockTV reporter Joe Saz says he thinks XRP may be facing a fundamental market weakness that will continue to drive the price of the third-largest cryptocurrency by market cap lower.
On a new episode of Trader’s Take, Saz says the future of XRP is facing a “whole heap of what-ifs.”
“We’re trading below what was a very long-standing set of trend lines right here [at $0.28]. That was all the way back to December of 2018. We broke it violently and this is what’s really got me going crazy right now.
I see this massive attempt to break the trend of lower highs and trying to get into more of our channel that XRP has historically fallen back to even after breaking into other areas. This has been a pretty nice channel for a long time in terms of stability and a place where you can believe XRP will return to eventually…
We have descending volume going into a pennant formation, with equal possibilities on both ends of that spectrum. I would say I’m bearish for now. We do have a tendency to make our way back into this channel [above $0.28] but as you can see we’ve been rejected twice.”
Saz notes the number of big announcements from Ripple, including its new partnership with payments giant MoneyGram, have yet to impact the price of XRP.
“What’s going to happen if this guy wins the lawsuit that XRP is a security and XRP has to get delisted from all these American exchanges?
There’s a whole heap of what-ifs on either end of the spectrum. So I think it’s a little curious. I’m really curious to see how the support for an asset plays out with such bad press potentially forthcoming. And more importantly, the good press having very little impact on price.”
FXStreet analyst Ken Chigbo is also looking at XRP’s movement and agrees XRP is in a bearish pennant, with the crypto asset finding strong support at $0.25.”
“XRP/USD found decent comfort at the big $0.2500 mark, which has helped prevent free-fall. Price action is stuck within another daily bearish pennant structure, subject to downside risks.”
Ripple recently responded to accusations that its sale of XRP has kept the price of the digital asset from rising along with most of the crypto market this year. The San Francisco startup, which owns more than half of the total supply of XRP with most of its holdings locked in escrow, says XRP’s supply inflation rate is lower than both Bitcoin and Ethereum.
The company has also announced it plans to “substantially” reduce its sales of XRP in the third quarter of this year.