In a recent analysis shared via X, Peter Brandt, regarded as one of the leading experts globally in applying classical charting techniques to trading futures, foreign exchange, and crypto markets, suggested that the XRP to Bitcoin (XRP/BTC) exchange rate could potentially hit zero. Brandt’s analysis applies traditional techniques inspired by pioneers such as Schabacker, Edwards, and Magee to forecast this drastic trend.

Brandt stated, “From a pure classical charting point of view (that is, Schabacker, Edwards, Magee) this chart looks like it is headed toward Zero. XRPBTC”

XRPBTC analysis, 1-week chart | Source: @PeterLBrandt

Why Brandt Thinks XRP Is Going To Zero Vs. BTC

The chart indicates a troubling trajectory for XRP when priced in Bitcoin, with key support levels being consistently tested over time. The weekly chart showcases a series of peaks and troughs with notable highs in 2017 and a sharp decline from 2018 onwards.

Related Reading

Recently, the XRP/BTC ratio has been hovering around a crucial support line, illustrated by a dashed horizontal line on the chart. Notably, the chart shows XRP/BTC experiencing significant volatility over the years. After reaching highs in 2017 at 0.00025 BTC, it has been on a general downtrend, especially notable after September 2018. “XRPPBTC has lost 70% of its value since the Nov 2017 post,” Brandt commented.

A critical historical support level for the digital asset is highlighted by Brandt at around 0.000007 BTC (black line), which the market is currently testing. The continuation of the bearish trend might break this support.

Moreover, two moving averages are depicted on the chart. The 8-week SMA (Simple Moving Average) is currently at 0.00000838 BTC, while the 18-week SMA stands at 0.00000990 BTC, indicating bearish momentum as the price is below both averages.

Related Reading

The Relative Strength Index (RSI) on the chart, with a 14-week period, is at 28.80, which is near the oversold territory. This might usually suggest a potential for price recovery, yet the persistent bearish sentiment depicted suggests caution.

Peter Brandt’s assertion that the XRP/BTC ratio could be “headed toward Zero” comes from observing the continued failure of the price to rebound from key support levels and the downtrend remaining intact without signs of reversal. His commentary reflects a stark outlook for XRP when compared against Bitcoin, emphasizing the importance of these technical levels in predicting future movements.

In a follow-up post on X, Brandt doubled down on this claim, stating, “It is actually fun poking a stick at XRP_aholics. My comparison is to BTC, not USD, so here is what I don’t understand. How can XRP bulls be so insistent in that XRP is near ATLs vs BTC, and, in fact, has only closed higher than present levels in 6 of the last 126 months?”

At press time, XRP traded at $0.49845.

XRP price
XRP price, 1-week chart | Source: XRPUSD on TradingView.com

Featured image from Shutterstock, chart from TradingView.com





Source link