Legendary trader Peter Brandt has taken another hit on XRP, the third-largest cryptocurrency by market cap.
He recently released a new chart, which predicts that the price of XRP could drop to just 1,100 sats against Bitcoin if the bag holders finally abandon it.
I am a fan of simplicity in a chart. This chart tells me the bag holders (who need to dump> 40 Bil XRPs) are supporting $ XRPBTC at .000023 to .000024 as a desperate last stand. Sellers more aggressive since Oct ’19
If the bag holders back away, look for decline to $ .000011 pic.twitter.com/yFYiW7IXt0
– Peter Brandt (@PeterLBrandt) May 6, 2020
Brandt is referring to those who bought over 40 billion XRP (40 percent of the maximum supply of the cryptocurrency that is not controlled by Blockchain company Ripple Labs).
The token has been under a lot of selling pressure since October 2019, and the 2300 satoshis support appears to be the final support for XRP holders.
Investor Preston Pysh said it was "a great graph." As recently reported, he believes that the price of the token cannot grow organically as it lacks an incentive structure.
What a great chart.
– Preston Pysh (@PrestonPysh) May 6, 2020
Ripple puts its sales on hold
Ripple, which has close to 60 billion XRP, is often criticized for inflicting selling pressure on the token. This is something that company executives, including CEO Brad Garlinghouse, constantly deny, as it is not in their best interest to lower the price of XRP.
Recently, Ripple dramatically cut your quarterly sales, with only $ 1.75 million in XRP sold in the first quarter of 2020 (a 99.3 percent decrease from the second quarter of 2019).
However, the token price so far has struggled to recover. It is currently at $ 0.217, according to CoinStats data.