Trader Peter Brandt Sees Ripple’s XRP Crashing
Iconic trader Peter Brandt suggests price manipulation is keeping XRP above the water, but a crash is probable if the support does not hold.
Peter Brandt, the iconic trader, believes XRP is at risk for a deep price drop. Brandt additionally suggested Ripple may be supporting the price above $0.24. But if that price range fell, XRP may unravel to $0.02.
XRP is one of the worst-performing assets in 2019, remaining stagnant for most of the year. XPR was unable to recover above $0.50 for long, and slid under $0.30 in a gradual decline. XRP slid by a net 30% in dollar prices in the year to date, but also lost around 75% of its value against Bitcoin (BTC).
The decline was due to several factors, including general weakness in altcoins. But XRP also faces unique selling pressures, including Ripple’s stored funds, where each month the organization has the option to sell some of the coins. Additionally, the actual usage of the XRP asset for banking or international remittances has remained low or only experimental.
Other traders also see XRP as having the potential to lose support:
The price weakness of XRP is also exacerbated by the renewed discussion whether the asset is an unregistered security. A recent class-action lawsuit mounted by investors that bought XRP raised the issue, by invoking the rules on token issuance. Previously, XRP has been categorized as a utility token, and the matter of Ripple, Inc. selling an unregistered security was dropped. However, the lawsuit once again invoked the US Securities and Exchange Commission criteria, suggesting that XRP was, in fact, a security.
The class action also mentions that Ripple sold $1.1 billion in digital assets, accruing significant cash wealth, as well as Bitcoin (BTC) and other valuable digital assets.
“In order to drive demand for XRP, and thereby increase the profits it can derive by selling XRP, Ripple has portrayed XRP as a good investment, relayed optimistic price predictions, and conflated Ripple’s enterprise business with usage of XRP,” complained the claimants.
XRP was one of the most widely promoted assets, promising its xRapid payment system would revolutionize finance. Now, XRP will have to face new scrutiny as regulators are rethinking their stance on all digital assets.