The XRP cryptocurrency, supported by Ripple, has experienced a significant decline in value against Bitcoin since 2017, despite the overall bullish trend in the crypto market this year.
Renowned trader Peter Brandt predicts that XRP will continue to lose value against Bitcoin in the near future and may even be overshadowed by other alternative coins.
XRP, backed by Ripple Labs, is considered one of the underperforming altcoins among the top 20 most valuable digital assets by market capitalization. With a fully diluted valuation of approximately $50 billion and an average daily trading volume of around $814 million, this large-cap altcoin has been referred to as a “zombie altcoin.”
Moreover, XRP has been outperformed by Bitcoin over the past five years. Recent market data shows that while XRP has only gained about 63 percent in the last five years, Bitcoin’s price has increased by more than 1000 percent in the same period.
Peter Brandt, a veteran trader in both stocks and cryptocurrencies, predicts a bleak future for XRP holders. Despite the signals of an upcoming altseason, Brandt believes that XRP’s value against Bitcoin will continue to decline in the coming months. He reminds XRP enthusiasts that the Ripple-backed digital asset has lost over 70 percent of its value in the past five years.
Brandt notes, “It is fun poking a stick at XRP_aholics. My comparison is to BTC, not USD, so here is what I don’t understand. How can XRP bulls be so insistent in that XRP is near ATLs vs BTC, and, has only closed higher than present levels in 6 of the last 126 months?”
Brandt emphasizes that based on a purely classical charting perspective, the XRP/BTC chart indicates that the altcoin is heading towards lower lows. His comments have received a lot of criticism, mostly from XRP enthusiasts. One trader, for example, pointed out that XRP’s price outperformed most other cryptocurrencies in 2017, immediately after Brandt shared a similar XRP chart.
The past three years have been tumultuous for XRP holders, with Ripple’s monthly market dump and the ongoing lawsuit. As the crypto market prepares for the parabolic phase of the bull cycle, XRP has continued to lag behind. Binance, the leading cryptocurrency exchange, announced on Tuesday that it will discontinue support for XRP in its multi-asset mode due to low demand and regulatory pressure.
The US Securities and Exchange Commission (SEC) has been pushing the court to fine Ripple $2 billion for violating securities laws. Although Ripple has won a significant portion of its arguments in court, more crypto investors are now turning to promising web3 projects that don’t face legal hurdles.
In terms of price action, XRP’s value against the US dollar has established a solid support level at around 50 cents recently. However, the altcoin must reclaim the weekly support level above 58 cents or face the risk of further decline in the near term.
According to the latest market data, XRP’s price has decreased by around 2.3 percent in the last four weeks, trading at around 50 cents on Wednesday, May 15, 2024.