Low volatility in an asset class is an attribute that is necessary for it to qualify as a currency. XRP has traded in the 4 cents range of $0.33-0.29 from the past two months. However, things are starting to get eerie as XRP is an asset class that is still in its evolution phase. Moreover, its sudden stability in price is completely opposed to its previous volatile characteristics.
A leading crypto trader and analyst, Peter Brandt has suggested that market manipulation might be the reason. It is also suggestive in the fact that most of the other altcoins including Ether (ETH), Litecoin (LTC), Stellar Lumens (XLM), Bitcoin Cash (BCH), Tron (TRX) have all shown considerable movements during Q1 of 2019 with more than 50% gains.
Dynamics at work in a massive descending triangle that moves to apex.
1. Mkt is manipulated
2. Manipulators support at fixed level
3. But are forced to lower their selling price as time goes on
4. If (when) support gives way, desperation will ensue$XRPUSD pic.twitter.com/RmJaYiC8KY
— Peter Brandt (@PeterLBrandt) March 21, 2019
On the 24-hour chart of XRP/BTC, there is an apparent deviation from the patterns that an asset class must follow. A descending triangle is formed on a yearly time-scale which suggests that the downtrend has to continue further almost certainly.
Brandt noted that, “The concept of the desc tri is that the market does not have enough power to rally any further and the manipulators keep getting every so desperate.”
A break out from the triangle could have suggested a bullish momentum a couple of days back. However, XRP seems to have completed the descending triangle formation and must follow the price action after that. The price of XRP on 22 March at 13 00 UTC is $0.313 according to coinmarketcap.
The 200-Day Moving Average is also looking to cross the 50-Day Moving Average which is indicative of a bear signal as well.
Therefore, considering the above factors the prolonging stability of XRP around the $0.3 range is indicative of market manipulation. The suspected reason cited by Brandt is unloading of XRP tokens by whales who have kept the price momentarily.
They are trying to get rid of their private stash and providing ARTIFICIAL support in process.
The fundamentals around XRP are also uncertain with securitization doubts. Nevertheless, Ripple continues to strive forward in the payments sector and the gaming world as well.
Do you really think that XRP in influenced by market manipulation? Share your views and analysis with is.