Legendary trader Peter Brandt has taken another jab at XRP, the third-largest cryptocurrency by market capitalization.
He recently posted a new chart, which predicts that the XRP price could drop to just 1100 sats against Bitcoin if “bag holders” finally abandon it.
I am a fan of simplicity in a chart. This chart tells me the bag holders (who need to dump > 40 Bil XRPs) are supporting $XRPBTC at .000023 to .000024 as a desperate last stand. Sellers more aggressive since Oct '19— Peter Brandt (@PeterLBrandt) May 6, 2020
If the bag holders back away, look for decline to $.000011 pic.twitter.com/yFYiW7IXt0
“A desperate last stand”
Brandt refers to those who bought more than 40 bln XRP (40 percent of the cryptocurrency’s maximum supply that is not controlled by blockchain company Ripple Labs).
The token has been under a lot of selling pressure since October 2019, and the 2300 satoshis support appears to be the final stand for XRP holders.
Investor Preston Pysh commented that it was “a great chart.” As reported by U.Today, he believes that the token's price cannot grow organically since it lacks an incentive structure.
What a great chart.— Preston Pysh (@PrestonPysh) May 6, 2020
Ripple puts its sales on hold
Ripple, which holds close to 60 bln XRP, is often criticized for inflicting selling pressure on the token. This is something that the company’s executives, including CEO Brad Garlinghouse, constantly deny since it’s not in their best interest to tank the price of XRP.
Recently, Ripple drastically reduced its quarterly sales, with only $1.75 mln worth of XRP sold in Q1 2020 (a 99.3 percent decline from Q2 2019).
However, the token’s price has so far struggled to recover. It is currently sitting at $0.217, according to CoinStats data.