2020-7-2 23:00 |
XRP spent the last several years as the worst performer in the cryptocurrency market. And even though the altcoin has been beaten and battered, it has recently sunk even lower compared to Bitcoin and Ethereum.
Why exactly is the altcoin commonly referred to as Ripple, so severely crippled and unable to gain positive momentum?
XRP Underperformance Against Bitcoin and Ethereum Reaches New ExtremesFor two years running, XRP has been among the worst performers in the cryptocurrency space, alongside XLM.
The previously third-ranked cryptocurrency reached an all-time high of over $3.50 per token following Bitcoin’s peak in 2017. But since then, it has fallen so hard that the stablecoin Tether has knocked it out of the third-ranked spot.
The altcoin remains over 94% down from its record set in early 2018 on the XRPUSD pair. On the XRPBTC pair, the asset is currently down 91%.
Ripple XRPBTC & XRPUSD Comparison | Source: TradingViewThe cryptocurrency has reached extremely oversold conditions, yet any glimmer of a rally is immediately sold down. Even Ripple execs committing to cease selling themselves hasn’t had any positive impact on price action.
Related Reading | It’s Official: Tether Flippens Ripple After Recent Crypto Crash
Negative sentiment continues to build. It’s led the altcoin, now in fourth place in the top list of crypto asset by market cap, to underperform Bitcoin and Ethereum over the last 30 days. But what is causing the gross underperformance in Ripple, and the extreme deviation between it and other assets?
Ripple Bitcoin Ethereum Comparison | Source: TradingView Why Are Whales Accumulating The Crypto Market’s Worst Performer?The altcoin known as Ripple over the last 30 days, has fallen nearly 14% according to data. During the same timeframe, Bitcoin dropped over 3%, and Ethereum, just over 4%.
The three long-time top crypto assets are typically tightly correlated. When one pumps, so do the others. Especially on USD trading pairs.
Then why exactly is XRP falling so sharply against BTC and ETH by comparison?
A large supply of the altcoin held by PlusToken scammers is said to have been mixed recently, and stealthy selling could be responsible for the continued drawdown. However, these scammers are said to have Ethereum and potentially more Bitcoin to sell as well.
Related Reading | Ripple Effect: Crypto Whales Buy Up A Sea of Small Fish Selling
Sentiment could simply be this bad in XRP holders, who have suffered far worse than most other altcoin bagholders.
Watching Tether “flippen” the asset, and Bitcoin and Ethereum surge could be causing mass capitulation amongst holders of the altcoin.
But while any capitulating small-time fish are selling off their XRP at extreme lows, the largest account holders – whales – are absorbing the selling.
Data shows that the largest under 1% of wallets are increasing their holdings, while smaller wallets dump theirs.
Even despite the ongoing downtrend in XRP, even reaching new depths, the reason why investors continue to hold out hope can be seen below.
Ripple XRPUSD Weekly | Source: TradingViewAlthough the cryptocurrency has spent nearly three full years in an over 90% downtrend when it does breakout, it is unstoppable.
In less than a year, XRP rose over 50,000%. That’s not a typo, it’s one of the largest gains ever recorded in cryptocurrency history. If this happens again, anyone selling now at these lows are going to experience something far more painful than the downtrend has been.
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