Yesterday, we talked about Ripple’s native cryptocurrency and how it is one of the worst performing cryptocurrencies throughout the past couple of years. In 2020, this did not change and the Ripple news show that XRP is on the verge of a breakdown, underperforming Bitcoin and its USD trading pair.
Even though the altcoin is still one of the big players out there, the underperformance makes it less attractive for investors and analysts. The community is agreeing that the crypto is on the cusp of seeing another breakdown as it hovers just above a critical support level.
What is interesting is the fact that the technical weakness comes as the crypto shows signs of heightened social activity from investors across social media platforms. The spikes in social activity tend to be correlated to uptrends, and it is possible that this is a sign that XRP is poised to push higher in the hours and days ahead.
XRP is on the verge of a breakdown and at press time, the coin is trading at $0.2027 – a price level which has proven to be psychologically important throughout the past year. In fact, this level acted as both support and resistance on multiple occasions.
Just like all other major cryptocurrencies, XRP saw some intense turbulence over the past week as it rallied to highs of $0.2150 alongside the Bitcoin news showing how BTC climbed to $10,500 as a new high.
However, the rejection led to lows of just under $0.20, proving that the cryptocurrency is not as stable as many think. One analyst highlighted this in a recent tweet and explained that XRP is on the verge of a breakdown, potentially opening the gates to another significant downside.
“XRP daily chart – Prepping for a new breakdown with this descending triangle forming,” the analyst said as he published the chart.
— Cheds (@BigCheds) June 5, 2020
There is some support existing now at 0.0000205 BTC, slightly below the price of 0.00002095 for XRP. However, one factor to be aware of is that XRP has seen spiking social volume throughout the past couple of days.
Data from Santiment spoke about this in a tweet, explaining that XRP has not entered the top spot on their “Emerging Trends” feed in 2020.
$XRP has entered the top spot on @santimentfeed's Emerging Trends, and has seen massive social volume spikes. These are potential indicators of an upcoming decoupling from $BTC, so keep an eye on #Ripple's upside since these spikes aren't pump-related yet. https://t.co/bOsEdsGXz4 pic.twitter.com/HbTxWegRVv
— Santiment (@santimentfeed) June 4, 2020
As XRP is on the verge of a breakdown, analysts hope that it would be able to decouple from Bitcoin and garner some upside. If it does that, it could invalidate its near-term downtrend and start erasing some of its recent losses.
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