Unlike Bitcoin (BTC), which rebounded sharply in 2019, Ripple (XRP) didn’t manage to sustain any gains it made throughout the year. Moreover, the world’s third biggest digital coin by market cap has decreased more than 46% in the previous year.
Fundamentals: “Institution-enabled retail money grab”
Negative headlines surrounding XRP are not a novelty in the cryptocurrency world as the close relationship with FinTech company Ripple continue to create concerns for the coin.
Media outlets reported previously that Ripple company created and defacto now controls XRP, which was strongly rejected by Ripple’s management team. For instance, Ripple sold $251.51 million in XRP in the second quarter of 2019, as revealed in the company’s Q2 results. Previously, Ripple sold nearly $170 million worth of XRP in Q1.
Mike Dudas, CEO of The Block, made a bold claim that Ripple is an “example of dishonesty”.
@Ripple is the saddest & most egregious example of a dishonest, bad faith cryptocurrency project, given its size and duration. Observing this institution-enabled retail money grab continue unabated day in and day out saddens me. I’m optimistic the pendulum will swing in 2020.
[email protected] is the saddest & most egregious example of a dishonest, bad faith cryptocurrency project, given its size and duration.
Observing this institution-enabled retail money grab continue unabated day in and day out saddens me.
The tweet has in the meantime been deleted from the social media platform.
Cryptography consultant, Peter Todd, shares the same opinion on Ripple.
Technical Analysis: Price action reflects the negative environment
Last month, XRP hit a 26-month low against the USD when it printed $0.1760, which translates into a 65% drop in value for the XRP compared to its 2019 high of $0.51.
As seen in the chart, Ripple has broken below the 18-month descending triangle, a bearish chart pattern. A sustainable break of this pattern will open the road for more losses, as the bears target $0.1740 as the short-term target.
If an extremely bearish scenario plays out for XRP, we can expect the horizontal support below the $0.1500 mark to come into play. For the bulls to start initiating a recovery, a move above the triangle’s support is needed.
Negative headlines that surround fintech company Ripple and its quarterly token sales continue to persist. They have in the meantime translated into the bearish technical picture around the XRP, which ultimately resulted in a 46% drop in market value recorded in 2019. For the aforementioned reasons, we don’t recommend investing in Ripple.