Analyst points out that current bullish moment of XRP may disappear with Bitcoin halving
Major cryptocurrencies, including XRP, have been on a notable high in recent weeks. Bitcoin, whose trajectory dictates the direction of the rest of the cryptocurrency market, printed its seventh week of consecutive gains on Monday morning. This is a rare feat that, according to some, signals the start of a bull rally.
However, an analyst who works for a major crypto research firm fears that XRP will soon see a sharp drop. He noted that the asset graph is quite negative from a macro point of view.
Analyst talks about preparing the XRP for a sharp drop
Except for the recent hike, it has been a few months and years for XRP. Since the 2018 highs, cryptocurrency has shown a consistent bearish trend, both against the U.S. dollar and Bitcoin.
This could get worse for altcoin, with the head of technical analysis at crypto research firm Blockfyre watching that XRP is currently below a low key range. That low interval marked the bottom of each fall last year.
If XRP / BTC is unable to “recover quickly” to that level, where it “spent the last 274 days,” a 40% drop to 1,500 satoshis could happen, he warned.
The analyst added that the XRP’s performance against the dollar is bearish, as the asset recorded 850 consecutive lower macro-highs.
According previous Bitcoinist reports, a trader wrote that the XRP’s price action “looks super weak” despite the recent recovery:
“The price action cannot even close within this marked range […]. There is still a bit of time until the weekly close, but right now, I wouldn’t be taking on a new long position. […] A pullback to $ 0.18 to follow? ”The analyst wrote, referencing the chart below.
It’s all about Bitcoin now
While altcoins were in fashion just three weeks ago, Bitcoin once again claimed to be the main cryptocurrency.
As one prominent trader noted, last week there was a “sharp decoupling between Bitcoin and altcoins” as we move towards halving.
This relative performance, he explained, is a sign that the migration cycle from altcoins to BTC may begin.
That’s for good reason: the Blockfyre analyst who posted the chart above on XRP explained that the chances are that, once halving is digested by the market, altcoins will perform dramatically.
He continued in an analysis last month that, as you see it, altcoins are always a “game of musical chairs”, because the reasons why they are gathered are all “red flags”, as opposed to legitimate grounds:
“The reason the alts’ pumps are not convincing is because they followed the same standards. IEO’s, interoperability, privacy currencies moving together. It has been coordinated over the past 3 years, instead of all ships going up together. ”