- After a prolonged inactivity, popular analyst Edo Farina returned bearing good and bad news for Bitcoin and XRP.
- The crypto personality pointed out that Bitcoin’s “extremely thin order books” after the massive market liquidations indicate a bearish scenario.
- Nevertheless, his conviction for XRP is steadfast due to the asset’s solid fundamentals.
Edo Farina, Head of Social Adoption at XRP Healthcare and Trainee Lawyer at MMLaw, recently resurfaced after a long radio silence. His resurgence came with good and bad news for Bitcoin (BTC) and XRP.
Bitcoin and Crypto Market Tread on ‘Extremely Thin Order Books’
The analyst warned that the largest single-day crypto liquidation in early October, followed by other significant drawdowns in the next few weeks, left the market with “extremely thin order books.” This makes it easier for big players to manipulate the market and shake down retail investors.
Farinas explained that the trimming of the herd has resulted in fewer active market participants. Additionally, the narrow order books have led to less liquidity. He believes all these point to a saturation in Bitcoin’s momentum and signal the end of its hype. The overall trend indicates a bear market.
Interestingly, the trainee lawyer threw a curveball at the perceived bull cycle this October. According to him, it hadn’t even started yet.
To illustrate his point, Farina highlighted that despite Bitcoin maintaining price levels above $100,000, a majority of altcoins are behaving like they’re in a bear market. US President Donald Trump’s announcement of China tariffs, which triggered $19 billion in liquidations, only served as a catalyst to expose the market’s fragility.
Farina claimed Bitcoin’s psychological support remains at $100,000. However, from a technical standpoint, the critical support is around $99,500. He considers a dive below that level “catastrophic” for the crypto market.
Nonetheless, the analyst is not dismissing the possibility of Bitcoin reaching a new all-time high of $150,000, especially if Trump delivers another market-shaking rhetoric. But he thinks the odds of that scenario occurring are low.
Is It Time to Sell XRP?
Farina’s readings suggest that XRP will likely retest the $1.80 mark in the “coming weeks” or even lower. On the other hand, if the token manages to break out from the $2.80 line, it could invalidate his short-term bearish outlook for the asset.
The analyst said that while he often uses technical analysis for his predictions, he emphasized that the method fails to account for supply shocks, such as the one he claimed is happening with XRP. He clarified that while supply increases are typically bearish, it could do plenty of favors for the XRP Ledger’s native token. He stated that it could be the “ultimate reason why XRP is going to decouple from the markets” and forge its own trajectory as the broader crypto market enters a new bearish phase.
Still, Farina warned investors to be vigilant in their positions by placing their buy orders and stop losses accordingly, just in case the market heads in the opposite direction.
Disclaimer: The facts presented in this article are only for informational purposes. They do not serve as financial advice or product recommendations from the author or the Blockzeit team.
