It was a difficult month for holders of the XRP cryptocurrency .
In the past 30 days, Bitcoin has risen 5%, Ethereum has jumped 20%, and a majority of cryptocurrencies have posted gains somewhere in between. In contrast, XRP actually fell 5% in the same period, without being supported by a hot altcoin market.
A number of high-level analysts expect this underperformance to continue, indicating clear technical signs that the altcoin is far from bullish.
XRP BOARD DOESN'T LOOK TOO HOT
A top trader shared the chart below on June 5, showing that the cryptocurrency is in a “falling triangle” formation, marked by a series of lower highs and new consistent dip tests.
“ XRP daily chart - Prepare a new breakdown with the formation of this descending triangle,” he noted.
The descending triangles often break lower, and this one seems ready to do so as XRP approaches its apex. The bitcoin has formed a descending triangle in the summer of 2018, for example, before plunging 50% lower at the end of the year.
Other analysts echoed the expectation that the XRP might have a dark path ahead of it.
It has indicated that the asset could return bullish if it closes above the green level shown in the chart below, but asserted that the cryptocurrency is still in a downtrend which will cause it to fall. 50% price.
"I will trade XRP against BTC when it shows strength. Any weekly closing above the green and I'm interested. Until then, who knows what can happen, currently down 91% from ATH but has already seen 95% fall, which is close to another 50%. Move slowly, ”he noted, pointing to the table below.
CHANCES ARE STACKED AGAINST BULLS
The truth is that the odds are against XRP bulls - and altcoin buyers as a whole.
According to Florent Moulin - who is part of the research and products team of the cryptographic research firm Messari - the inflation rate of the cryptocurrency is much higher than that of other digital assets.
He said the inflation rate of the circulating supply of assets has been 20% in the past 12 months, five times that of Bitcoin before being cut in half.
Investors say high inflation rates are putting downward pressure on the XRP . Last year, Kyle Samani of Multicoin Capital told Bloomberg:
"The company has steadily increased sales of XRP in the previous three quarters, which has likely put downward pressure on XRP prices . Savvy investors have known this for some time; however, for whatever reason, the market just picks up the story and reacts.