XRP has been the worst performer in the cryptocurrency market in recent years. And although the old coin has been struck and struck, it has recently sunk even lower compared to Bitcoin and Ethereum.
Why exactly is the old coin generally called ripple, is so crippled and cannot gain positive dynamism?
XRP underperformance against Bitcoin and Ethereum reaches new extremes
For two years, XRP has been one of the worst providers in the cryptocurrency space alongside XLM.
The previously third-placed cryptocurrency hit an all-time high of over $ 3.50 per token after the peak of Bitcoin in 2017. Since then, however, it has fallen so much that the stablecoin tether has displaced it from third place.
The altcoin remains over 94% below its early 2018 record for the XRPUSD pair. For the XRPBTC pair, the asset is currently down 91%.
Ripple XRPBTC & XRPUSD Comparison | Source: TradingView
The cryptocurrency has reached extremely oversold conditions, but every glimmer of a rally is immediately sold out. Even ripple managers who committed to discontinue sales had no positive impact on price developments.
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The negative mood continues to grow. As a result, the altcoin, ranked fourth on the top list of crypto assets by market cap by market cap, has lagged behind Bitcoin and Ethereum in the past 30 days. But what causes Ripple's gross underperformance and the extreme divergence between Ripple and other assets?
Ripple Bitcoin Ethereum Comparison | Source: TradingView
Why do whales accumulate the worst performing crypto market?
According to data, the old coin known as Ripple in the last 30 days has fallen by almost 14%. Over the same period, Bitcoin fell more than 3% and Ethereum slightly more than 4%.
The three long-standing top crypto assets are usually closely correlated. When one pumps, the others pump too. Especially with USD trading pairs.
Then why exactly does XRP drop so much compared to BTC and ETH?
A large supply of Altcoin held by PlusToken fraudsters is said to have been mixed recently, and clandestine sales could account for the continued decline. However, these scammers are said to sell Ethereum and possibly more Bitcoin.
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The mood could just be so bad among XRP holders who have suffered far worse than most other Altcoin bagholders.
If you watch Tether "flip" the asset and the surge in Bitcoin and Ethereum can lead to mass surrender among Altcoin holders.
But while capitulating small fish sell their XRP at extreme lows, the largest account holders – whales – are absorbing the sale.
Data shows that the largest under 1% of wallets increase their holdings while smaller wallets drain their holdings.
Despite the ongoing downward trend at XRP that is even reaching new lows, the reason investors continue to give hope is to see below.
Ripple XRPUSD Weekly | Source: TradingView
Although the cryptocurrency spent almost three full years in a downward trend of over 90% when it erupted, it is unstoppable.
In less than a year, the XRP rose by over 50,000%. This is not a typo, but one of the greatest gains ever recorded in cryptocurrency history. If this happens again, everyone selling now at these lows will experience something far more painful than the downtrend.