Could This One Chart Predict XRP’s Doom? 💸

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  • Peter Brandt, the prophet of doom, has recently uttered a most melancholy XRP prognostication, hinting at a rather grim descent to the $1 level. 🧐
  • Though one might suggest XRP was grasping at straws, its bullish market façade remains, at least for the moment, unscathed.

Ah, dear Ripple [XRP], dancing the waltz of economic misfortune! Despite optimistic musings surrounding the SEC lawsuit, it has woefully failed to ascend the heights of $2.5, instead languishing in the downtrend from Q1, having demurely shed 30% from its glittering highs of $3.4. Alas, poor XRP!

In a revelation that would warm the cockles of any doomsayer’s heart, the illustrious chart sage, Peter Brandt, forecasts a potential plunge of 43% should it tumble below the $1.9 mark. He points to the rather ominous H&S (head and shoulder) formation that, if realised, would aim its sights at a depressing $1.07. Sigh!

“$XRP is forming a textbook H&S pattern. So, we are now range-bound. Above 3.000, I would not want to be short. Below 1.9, I would not want to own it. H&S projects to 1.07”

So, Do XRP’s On-Chain Signals Agree, or Is It Just a Wretched Charade?

In a happy coincidence, some on-chain signals echo this rather bleak perspective. The active addresses on the XRP Ledger took a nosedive, plunging by 62% from their December zenith of 74K users to a mere 28K in March. One can only marvel at such folly! 🎩

According to the clever canons of Santiment’s MVRV Z score, XRP remains far too pleased with itself at current valuations. This metric provides an insight into whether a merry asset is frolicking in overpriced fields or wallowing in undervalued despair.

A score above one indicates ‘overpriced’ territory, as more holders, feeling rather sprightly, may entertain thoughts of profit-taking. Conversely, a score below one suggests an undervalued delight. 🥳

For Ripple, the MVRV Z score soared above 6 in December, stout-heartedly residing at 2.8 at this very moment. This suggests long-term holders are lounging on unrealized gains between 2.8X to 6X and might, with exquisite timing, choose to sell, thereby sending XRP crashing down, like a soufflé in an ill-prepared kitchen. 🍰

However, the extensive accumulation observed over the past week casts a shadow over this bearish sentiment, leaving many a financier scratching their heads in disbelief. 😱

Per Coinglass data, a staggering $43 million worth of XRP was whisked away from exchanges this week alone. Overall, what a regal sum of $290 million worth of XRP has left exchanges in March, implying some players remain ever-hopeful for another exhilarating rally. Will their valiant longs come to fruition, or are we merely witnessing a tragic farce? 🎭

Turning our gaze to the price chart, one must keep an astute eye on the support levels of $2 (dressed in cyan) and $1.4 (arrayed in white) before one contemplates Brandt’s dismal target. And yet, in a flicker of optimism, XRP continues to hover above the 200 Daily Moving Average (DMA) – a bastion of bullish market structure, at least for the nonce.

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2025-03-27 13:15