Since then, it has been forming lower lows with a baseline holding as support, forming a bearish descending triangle. Veteran trader and chart analyst, Peter Brandt tweeted,
I am a fan of simplicity in a chart. This chart tells me the bag holders (who need to dump > 40 Bil XRPs) are supporting $ at .000023 to .000024 as a desperate last stand. Sellers more aggressive since Oct ’19
If the bag holders back away, look for decline to $.000011
The predicts seem obnoxiously exaggerated from $0.21 (0.000023 BTC) to $0.000011, but it clearly underlines his believes of doom.
A Strong Sell Signal?
What’s more worrying for the investors is that the pattern resembles on higher time-frames as well. XRP gained over 50,000% in 2017 reaching highs above $3. Its ‘bag holders’ are the usually the people who bought the coins around the December 2017 highs and later in the first half of 2018.
On the weekly chart, $0.192 and $0.147 are likely to hold as support. However, the price has already dipped below the 2018 bear market, which is a fairly worrying signal. It will need to consolidate above $0.325 to build a bullish momentum.
Derivatives and crypto trader. Cantering Clark, also called out the sell signal below the 2300-2400 sats level on XRP/BTC with considerable sarcasm aimed at the ‘bag holders.’ He tweeted,
$XRP-pee holders be like
"THIS IS JUST ONE BIG PLAN TO ENGINEER LIQUIDITY, DCA DOWN BRO!" pic.twitter.com/kUtH0787zf
— Cantering Clark (@CanteringClark) May 6, 2020
As reported earlier on CoinGape, Brandt and other leading traders like Tone Vays have gone out on a limb to call out Ripple’s XRP scam. Recently, reports of Jed McCaleb, the co-founder of XRP who later broke away from Ripple, selling heaps of XRP surfaced.
Reportedly, in April he sold nearly $12 million in XRP. This is in addition to the 1 billion XRP that Ripple adds to the circulating supply from their 55 billion in holding. Along with the escrow release from Ripple, such large-scale selling is a worrying signal, fundamentally.
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