Let me pull the band-aid off quickly—today is a bad day for Ripple news.
Not only did the XRP coin lose 6.75% in the last 24 hours, but it did so as the rest of the market recovered. Bitcoin gained 6.79%, Ethereum jumped 2.79%, and Litecoin surged by a whopping 9.15%. Being left out is never fun, but losing $589.0 million in market cap will really make it sting.
The split between Ripple and its peers is significant.
For one thing, Ripple was hosting SWELL (its first ever conference) when the slump began. We initially wrote that there was no cause for alarm because investors appeared bearish on the industry as a whole.
Apparently, that wasn’t true.
Ripple prices continued to collapse after the rest of the market found a foothold. Or to put it another way, investors singled out XRP for some punishment. They weren’t too impressed by the announcements made at SWELL.
If you’re interested, you can read about what happened at SWELL here. Some analysts were bullish on Ripple’s announcements, but even they agree that investor sentiment has turned against XRP.
And investor sentiment is what matters.
The Ripple to USD exchange rate is now significantly below its one-month high of $0.291359. It is trading at around $0.211336. That’s not a fun place to be, especially considering that $0.20 is a crucial level for Ripple.
It took enormous price momentum for XRP to break that threshold before, which is why investors should be worried about it falling below that level again.
The dichotomy between XRP and its peers is threatening to push back our Ripple price prediction by several months. We had previously forecasted that XRP would breach $0.40 before the end of the year, and then accelerate to $2.00 in the first three quarters of 2018. That timeline is now in question, but we remain confident in its veracity.