Bitcoin Analyst Says XRP Dead Since 2018 Because of Inability to Conquer 5-Year Trendline
Savy, a Bitcoin (BTC) analyst and crypto community influencer, recently argued that XRP died when it plummeted in 2018, citing its inability to break above a persistent 5-year trendline.
The analyst presented his argument in a recent post on X. Data from an accompanying chart shows that a persistent white downward trendline has plagued XRP since it collapsed from the $3.3 price in January 2018.
The Battle at the Trendline
For over three years, XRP traded way below the trendline, with no hope of even testing it. This changed in early 2021 when XRP recorded a massive 180.77% surge in April 2021. The asset had also rallied 37% in March 2021. This string of rallies helped XRP test the resistance at the trendline.
XRP successfully broke above the trendline amid this run but faced a second yellow trendline. The momentum was not strong enough to break above this second trendline, resulting in a major correction that saw XRP decline by 67% in the two following months.
XRP 1W Chart | Crypto Savy
After this correction, XRP has been aiming to retest the trendline but failed to hit it on multiple occasions. The latest attempt was in July this year when the asset rallied to $0.93. XRP eventually broke above the trendline but could not retain the run. An ensuing retracement brought it back below the line.
XRP Attempts Another Breakout
XRP is now making another attempt at a breakout with a recent 31% gain in one month. However, Savy believes this attempt would also be futile. The analyst claimed the market has reduced XRP to a series of pump-and-dump patterns emanating from hype.
According to him, the surge stemmed from social hype each time XRP retested the white downward trendline. He claimed that XRP dumps when the hype dies down, with an inability to register a comfortable weekly close above the trendline.
This assertion of XRP’s innate nature goes against the consensus. Notably, several industry leaders have emphasized that XRP has robust potential to disrupt the crypto and traditional finance scenes due to its fundamentals and tokenomics. Notably, Savy faced opposition to his argument.
When asked if his outlook would change when XRP breaks above the white trendline, he argued that, should the asset stage such a breakout, the yellow trendline, stationed at a higher price range, would still trigger a price retracement. This occurred in July.
XRP Retains Bullishness Despite Recent Drop
Meanwhile, XRP recently faced opposition to the ongoing rally, which is currently down 5.79% over the last 24 hours. Despite the drop, the asset is trading above the 50-day MA ($0.5461) and the 200-day MA ($0.5379). Volume has also seen a remarkable surge, up 62% over the past 24 hours to $3,199,099,210.
Unlike Savy, several market watchers have projected an imminent XRP rally amid the bullish market. Top analyst EGRAG recently predicted that XRP’s market cap could surge to $997 billion, reflecting a price of $18. Pundit Panos Mekras argued that XRP investments could bring more returns than Apple, Amazon, and Netflix.