The Average Loss of XRP’s Investors May Soon Soar
Over the previous couple of years, XRP has been struggling to have a remarkable upside increase while several larger cryptocurrency assets were able to recover most of their losses. The performance of XRP is such that it is still on the downside by about 95 percent from its highs.
The cryptocurrency boom observed towards the end of 2017 propelled XRP to the upside, attaining price levels as high as $3.80. However, the rally was not sustainable as it encountered a huge resistance that led to a downturn that would last for years, eventually leading it to the downside towards lows in the sub-$0.10 zone in March 2020.
Remarkably, data on XRP’s aggregated cost basis reveals that the investments of most holders of XRP have been seriously submerged. This happens with its weakening technical strength, as some analysts predict notable downside movement.
An experienced trader thinks that its weakness is visible for XRP/BTC trading pair and noted the possibility of seeing another 30 percent decline or more. This possible fall will position XRP investors for the evaporation of their holdings.
Initially, XRP’s initial promise was majorly based on the speculated utility that Ripple’s cross border xRapid payment solutions would gather. However, investors are yet to see much advancement regarding the promise, thereby making some of them withdraw their funds from the token. In recent times, XRP lost its position as the third largest digital asset by market capitalization to the stablecoin Tether.
According to data, XRP’s average investor bought into the token at $1.38, as revealed by Ryan Watkins at Messari recently in a tweet:
“While not a lot of Bitcoin traded near Bitcoin’s all-time high, the same can’t be said for XRP. Despite XRP having only closed above $1.00 on just 2.1% of its trading days, XRP’s aggregate estimated cost basis is $1.38. This suggests most XRP investors are deeply in the red.”
In addition, an experienced trader known as Peter Brandt said he looks forward to more notable weaknesses in the coming weeks and months. That is, the average loss of XRP’s investors may soon soar.
Looks like Ripple Labs @Ripple has blown the wad allocated to support XRPBTC at .00002060 to .0002075 levels. If ice-line cannot be reclaimed, look for new support at .0000194 on way to .0000145
Hey, I'm just a boomer who hates XRP pic.twitter.com/L0wL3TA1s3
— Peter Brandt (@PeterLBrandt) June 10, 2020