XRP traders may be in for further losses as one trader warned that a bearish price feature was yet to complete its impact on the market.
In a tweet on Feb. 20, Peter Brandt, well known as a trader of both cryptocurrency and traditional assets, said that a “head and shoulders” pattern in XRP/USD this month had the potential to send prices lower.
XRP reached highs of almost $0.35 in recent days but subsequently fell conspicuously to press-time levels of close to $0.27.
“It will be interesting to see if this H&S top plays out. If so, the target would be 2071.”
The pattern played out over the course of February, with XRP/USD reaching $0.28 on Feb. 9, then falling briefly before climbing to the $0.35 highs on Feb. 15. After another dip, a fresh surge above $0.30 occurred on Wednesday this week.
Brandt added that he was not predicting XRP’s future, rather that the potential 25% losses were a “possibility.”
Brandt also shared brief but encouraging comments on the largest altcoin, Ether (ETH).
“It is holding very well,” he tweeted.
On the topic of Bitcoin (BTC), Brandt has yet to add to his already bullish stance. In an interview with in January, he stated that BTC/USD would not return to $6,000 or lower, as “weak hands” were no longer in the game.
Bitcoin subsequently hit multi-month highs of $10,500, before similarly retracing its progress. On Wednesday, a sudden dive of 8% in minute ruffled feathers among traders, with its exact cause still a matter of speculation.
Ripple CEO Brad Garlinghouse’s mission is to demolish bankers’ fear of cryptocurrencies and get them on board with the new asset class.
During a recent interview with CNN, Garlinghouse explained that “once regulators understand you’re not circumventing regulatory frameworks they get very comfortable very quickly.”
Garlinghouse said that someone at the World Economic Forum in Davos told him that “crypto is still a bad word here.” Because of this attitude in traditional finance, a big part of his work is explaining to bankers how crypto can solve real-world problems while staying compliant:
“A lot of what I am doing […] is meeting with regulators, meeting with very senior people at banks and explaining to them how crypto can be used — specifically XRP — can be used to solve a real problem, not to circumvent regulation. […] Once people understand that, they very quickly become disarmed, it’s no longer a bad word.”
Garlinghouse also addressed the adoption of Ripple’s crypto asset for on-demand liquidity, XRP, noting that last week it was used for $54 million in cash flows to Mexico. He claimed that this is 7.5% of the total flow of U.S. dollars to Mexican pesos, up from about 3% in December.
The CEO explained that such fast growth is due to the fact that “liquidity begets liquidity.” Garlinghouse said that the value of a product like XRP-based on-demand liquidity increases with the liquidity of the market, and the liquidity increases when — attracted by the high liquidity — more institutions join the network.