XRP has been facing some bearish price action in recent times despite the ongoing recovery seen across the aggregated crypto markets and the increasing investments that Ripple is making to further enhancing the token’s utility.
Analysts are noting that this lackluster price action is likely to result in further downside for XRP in the near-term, with one analyst noting that it is showing extreme weakness against both USD and BTC.
XRP Struggles to Climb Above $0.20 Despite Strength in Aggregated Markets
At the time of writing, XRP is trading up marginally at its current price of $0.195, which marks a slight decline from its daily highs of roughly $0.20 that were set overnight.
It is important to note that the crypto has been caught within a bout of sideways trading over the past several days, which has come about in the time following its recent rally from its weekly lows of $0.17.
Bitcoin has been incurring some decent upwards momentum over the past couple of days, although XRP has not been able to mirror these gains.
This lackluster price action has also come about concurrently with news that Ripple – the fintech company closely associated with XRP – just closed a $200 million fundraising round, which is anticipated to be at least partially siphoned into the digital token’s ecosystem.
In a blog post the company notes that they will use the funds to keep working to improve “global payments and the broader utility of the digital asset XRP and the XRP Ledger.”
Analyst: Token Poised for Significantly Further Losses in Near-Term
Calmly, a cryptocurrency analyst on Twitter, explained in a recent tweet that XRP looks “awful” despite some strong weekly closes from other major altcoins.
“#Ripple: Couple of the majors had strong weekly closes / opens. I’m still bear biased in this space, but I think it’s a tough call to short #Bitcoin here. So I’m shorting the worst looking pair I see. $XRP is giving me a short setup and the $XRPBTC chart is looking pretty awful,” he explained while pointing to the charts seen below.
#Ripple: Couple of the majors had strong weekly closes / opens
I’m still bear biased in this space, but I think it’s a tough call to short #Bitcoin here. So I’m shorting the worst looking pair I see$XRP is giving me a short setup and the $XRPBTC chart is looking pretty awful pic.twitter.com/Nw5EOns7aN
— Calmly | full-time trader (@im_calmly) December 23, 2019
Because Bitcoin is currently showing some signs of weakness as it struggles to maintain the momentum that was sparked over the course of the past couple of days, XRP’s potential near-term downside could be significantly perpetuated.
Featured image from Shutterstock.
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