XRP, the third largest cryptocurrency on CoinMarketCap, has been going through a tough time in the market. The coin has been fighting the bear since the beginning of 2019 and according to year-to-date [YTD] returns, the coin has fallen by 7.75%. On the opposite side of the spectrum, Binance coin [BNB] observed maximum growth among the top 10 coins, surging by 310.97% in 2019, while Litecoin [LTC] noted a growth of 153.08% and EOS by 106.92%.
XRP, which spearheads most major coins in terms of development, failed to register any gains and is the only coin in the top 10 to record negative YTD returns. Altcoins like Basic Attention Token [BAT] too have surged by 226% since the beginning of 2019, due to developments within the ecosystem. Stellar Lumens [XLM], which is XRP’s competitor in the market, is in the same boat too, in terms of performance. Nonetheless, XLM managed to register a meager 1.25% growth in 2019.
XRP’s native company, Ripple, has been heading most operations related to the adoption of the coin. However, there are speculations in the market that the price of the coin is deliberately being held back. Peter Brandt, an old school trader, speculated that the XRP market is being manipulated and that the price of XRP is deliberately being kept as low as it is. Brandt’s tweet on March 22 read,
“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.”
In one of his technical analysis for XRP, Brandt noted a descending pattern, which indicates a bearish breakout. This pattern has been extending over a few months, with price movement being sideways and accompanied by reduced volumes.
Previous reports had suggested that XRP was following its November 2017 pattern, awaiting a bullish breakout which could take the coin’s price to at least $1. However, considering the current chart of XRP, a descending triangle is on the verge of a bearish breakout. The volume has visibly reduced, as seen in the wedge spanning across 129 days. Source: TradingView
In the middle of a bearish market, Ripple’s CTO David Schwartz was recently called out for selling his XRP, branded as the ‘biggest warning sign’ for XRP hodlers, by many users. Even though Schwartz tried to placate XRP enthusiasts by claiming that he was following a ‘de-risking strategy,’ hodlers speculate a bear attack on XRP.
XRP’s price has not crossed $0.40 since November 2018 and is in the middle of its longest bear market. With falling prices and the formation of a descending triangle pattern, a bearish breakout is imminent. The bull run doesn’t seem to have begun for XRP, but the bearish breakout might lead the way towards the bull.
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Namrata is a full-time journalist and is interested in covering everything under the sun, with a special focus on the crypto market.