XRP kicks off another year of decline with the potential for the bear pennant to collapse

XRP, the cryptocurrency often referred to as Ripple, is the third largest crypto, but it was one of the worst cryptocurrencies of the year in terms of the top ten cryptocurrencies by market capitalization. Not only did it end the year with a loss, but it also set a fresh, fresh bear market low over the course of the last year of price movement.

This year, losses are likely to continue from the start, as XRP appears poised to break off a two-week bear pennant, lowering the price of the controversial crypto token even further, possibly to levels not seen in years.

XRP continues the chaos in the bear market for crypto investors

According to a prominent crypto analyst, XRP has been trading within a bear pennant for two weeks and appears to have closed a 4H candle outside of the lower support trendline. Now he confirms the trend line as support that reversed resistance.

To be continued … $ XRP pic.twitter.com/MVrzSfYQDA

– Livercoin (@livercoin) January 2, 2020

If the crypto asset confirms resistance at current prices, the asset is likely to fall even further, possibly to levels of just 13 cents per XRP token.

Related reading | Analyst: Ripple Distribution almost complete, XRP Mark Down could follow

Although the bear pennant pattern is strongly bearish, it can actually break bullish, so XRP bulls are not completely in danger until past support is confirmed as resistance. Throughout 2019, the repetitive appearance of bear pennant chart patterns lowered the price of XRP. In such a case, however, the pattern broke up and triggered a short-lived rally.

Ripple ready for a much bigger drop ahead?

If XRP cannot hold current levels, it risks falling to historical levels that have not been traded since the peak of crypto mania in late 2017. After the peak, the crypto bubble burst and assets like XRP have since declined.

XRP / USD price charts in daily periods show very little support at the current level. A zone between 13-15 cents per XRP is the last line of defense before bears have a chance to push back the third largest cryptocurrency by market cap at prices closer to one cent per XRP.

Below the latest bullish level, the crypto asset could drop to two cents per XRP. Below that, investors would be looking at prices of a fraction of a penny.

Related reading | Why crypto companies need to go bankrupt before the next bull market starts

While it’s hard to imagine that an asset that traded at nearly $ 4 per token two years ago fell to just a fraction of a penny, it was less than a year earlier when the asset traded at 0.004 cents. Given the explosive rise of nearly 100,000%, losses of up to 99% shouldn’t be all that surprising given the notorious volatility of the asset classes.

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