XRP, like the rest of the crypto market, is seeing an active bounce that has sent prices back to levels not seen since last year. With anticipation building for a possible approval of a Bitcoin Spot ETF this week, this setback is expected to be short-lived. However, not everyone is optimistic about a possible recovery as one crypto analyst expects the altcoin’s price to experience a massive crash in the future.
XRP huge bear flag appears
Crypto analyst Bitgolder went to TradingView part an extremely bearish analysis of the XRP price. This analysis identifies the presence of a bear flag, one of the worst we have seen on the altcoin’s chart in recent times.
As Bitgolder explains, the XRP price chart looks very bad, leading to a clear bear flag. Some of the reasons for the formation of this bear flag include the fact that there has been a drop in volume over the past week, as well as declining interest from investors as the altcoin has failed to live up to expectations following Judge Analisa’s ruling Torres. that programmatic XRP sales do not qualify as securities.
The crypto analyst explained that the recent surge the coin’s price saw in recent weeks was not, in fact, bullish. Rather, it was “just an extended jump for wave B of this correction from the XRP top.” The analyst is also convinced of the weakness shown by XRP, especially considering that the altcoin failed to reach a new all-time high in the last bull market, while other coins were rising.
Bitgolder is warning investors of a slow bleed for the XRP price, despite how optimistic the community seems to be. “It’s going to take a while for it to bleed out because of how many bag holders there are and how many stupid YouTubers keep pumping this thing,” Bitgolder warned. “It is a shame that many will lose their shirts because of this.”
Token price struggles below $0.6 | Source: XRPUSD on Tradingview.com
Price crash to ‘single digit cents’
After the slow deflation predicted by Bitgolder, the analyst also expects a further dump that will drive the price down even further, even into the few cents. The chart shared in the analysis shows an initial drop to $0.39. But a further dump will push the XRP price as low as $0.07.
Source: Tradingview.com
The reason behind this dump, according to the analyst, will be the fact that the US Securities and Exchange Commission (SEC) will ultimately win against Ripple in court. Bitgolder believes that XRP will eventually be considered an unregistered security. Either the US SEC will file a new lawsuit against the crypto company, which will ultimately cause investors to lose confidence and dump their coins.
I always thought that XRP might be able to do some amazing things, but after doing more research and looking at on-chain statistics, I am now convinced that this was the biggest pump and dump in history.
However, the analyst also points out that it may not be an outright dump as XRP could still shoot back up to the $0.7 area, which is the top of the bear flag. But Bitgolder calls this increase an outcome that would ensure that the rug is pulled out from under investors again. “It’s facing very strong resistance at the moment, so I’m not sure it can actually break through,” the analyst concluded.
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