Despite Ripple’s best efforts to speed the adoption of XRP, the number three altcoin is stuck in a downtrend that may see it reach new lower lows.
High Levels of XRP in Circulation
In a recent report, Messari affirmed that XRP was one of the worst-performing cryptocurrencies during the first quarter of 2020.
Although Ripple recently committed to acting as “disciplined, responsible stakeholders,” the $1.2 billion worth of XRP sold since 2016 appears to have jeopardized the token’s upside potential.
The cross-border remittances token opened the year at roughly $0.19 surging to a high of $0.35 in mid-February.
Despite the important partnerships that Ripple attracted to expand the adoption of its on-demand liquidity solution, the altcoin still performed poorly.
As interest in XRP seems to be declining, many investors are wondering whether Q2 will see its price continue to hit lower lows.
The Downtrend May Continue
From a long-term perspective, XRP is trading downwards since reaching an all-time high of $3.5 in January 2018. Since then, it has been making a series of lower lows and lower highs.
A bullish impulse that allows the cross-border remittances token to close above the Feb. 15 high of $0.35 could be considered as the beginning of a new uptrend. Until that happens, the downtrend would likely continue.
XRP could drop to the next level of support that sits around $0.062.
In the meantime, XRP appears to be breaking out of a rising wedge pattern.
This technical formation developed as a direct consequence of the price action seen over the last few weeks. One trend line connects the respective highs while another one joins the lows.
Now that this altcoin has broken below the lower trendline, it could drop another 24% to…