Technology factor says XRP is about to retest "Black Thursday" lows: analyst

All cryptocurrencies have suffered over the past few days, but XRP's performance has been particularly poor.

Compared to its high of $ 10,100 set at the end of last week, Bitcoin is down 13% at the time of writing.

XRP, on the other hand, lost more than 18% over the same period, underperforming most of its altcoin type.

It is underperforming with a high-level analyst who fears a greater decline in the coming weeks. In fact, the trader suggested that there was a possibility that altcoin would retest the price area around the "Black Thursday" lows.

XRP prints bearish technical signs

Although the XRP has remained above the $ 0.21 range as shown below for a long period of time, the recent decline has interrupted technical support.

Nik Patel, a major cryptocurrency trader and author of technical analysis, Explain that the market structure for XRP has "become bearish" after the loss of the support level.

"I am particularly interested in the highlighted area from which the market structure recently collapsed and became bearish. These breaks and changes also occurred in an important area: the 200-day moving average, ”he explained, referring to the table below.

Patel explained that if the XRP continues to be rejected from the "lower side of this area", the range of $ 0.21, he expects a "rapid drop below $ 0.175". After that, he wrote, there will likely be additional evidence of the $ 0.125 range, the drop achieved by the cryptocurrency during the "Black Thursday" crash in March.

In addition to the downside outlook for the XRP trading pair against the U.S. dollar, the analyst shared the same skepticism about Altcoin's performance against Bitcoin.

All eyes on Bitcoin

Fortunately for XRP holders, the cryptocurrency could be saved with a Bitcoin recovery. After all, Altcoins have a trajectory closely linked to that of the main cryptocurrency.

Analysts are currently outlining a medium to long term bullish outlook for BTC, citing fundamental and technical factors.

Galaxy Digital CEO Mike Novogratz has maintained his long-standing bullish tone about the major cryptocurrency in a recent interview with CNBC "Quick money" segment.

He claimed that with all the encouragement from governments, coupled with the record number of liquidity operations by central banks, Bitcoin could reach $ 20,000 by the end of the year.

In addition to the positive macro outlook, Novogratz added that Paul Tudor Jones, the legendary investor in macro hedge funds, entering the Bitcoin space is particularly notable.

In technical terms, a leading trader recently noted that Bitcoin's current weekly chart looks exactly like it was at the start of the 2019 bull rally.

The two periods highlighted in the table below show seven weeks of consecutive gains, followed by a "Doji" candle. The BTC, repeating what it has done in the past, will see it recover over 150% in the coming months.

Photo by Brad Bang on Unsplash