XRP (XRP), a leading altcoin, has at time of writing heavily sold off against Bitcoin (BTC), causing it to enter price territory not seen since well into 2017. Some, like eToro’s Mati Greenspan, have called this XRP’s “capitulation,” or a final collapse in price after long-term holders finally sell.
XRP finally capitulates. pic.twitter.com/2uDc3uNq0n— Mati Greenspan (@MatiGreenspan) July 10, 2019
Looking at a huge, weekly XRP/BTC chart, we can see what he’s talking about. The red support lines are where we could reasonably expect XRP to be supported with buying - but in the last two or so weeks, it has crashed through about half of these levels.
Zooming in a bit, there is perhaps one of these lines which we might highlight over the others. During XRP’s previous “capitulation” on this scale - just before its greatest pump ever - the crypto found support at about 1,527 satoshis. This mark is about 50% down from XRP’s current Bitcoin price.
We also see here that RSI is not (yet) showing any signs of slowing down; and that the histogram has, after flattening out, begun ticking down for the week. But, the week is only half over so these indications are not final.
The obvious response to a claim of capitulation is to look on the XRP/USD chart; and indeed, things do not look quite as dire here.
We see price getting down toward yearly lows, after what at first looked like the start of a general reversal in May. The block between $0.25-28 is likely to hold XRP in the end: only a capitulation in both XRP and Bitcoin’s price would see the altcoin lose these levels.
Returning to XRP/BTC’s daily chart, we do see some signs of life on the indicators which might encourage prospective buyers.
The RSI is respecting a rising trendline, and looks to be curling back to the upside - suggesting that it may hold this trendline in the end, and reach a higher low. If price is held somewhere around here, a shallow histogram trough would be put in and suggest a bottom.
The next couple of days will put some important ink on these daily indicators, which may help us anticipate where the weekly candle will close. At present, it is too soon to tell if a final capitulation is in - or if there is more pain to come for XRP holders. Only knife-catchers need apply.
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