Ripple News Update
Regular readers of Profit Confidential know I’m incredibly bullish on Ripple (XRP). There is, however, something that’s been bothering me lately.
XRP trading volumes fell below $1.0 billion yesterday.
And rather than recovering, volumes continued to fall lower and lower. At the time of writing, investors had only swapped $375.9 million worth of XRP in the last 24 hours.
This is disturbing.
Ripple prices are highly correlated to trading volumes, meaning that a fall in the latter often precedes the former. This is also true in reverse. Increasing volumes was one of the telltale signs of an XRP price rally, which is something I’m always on the lookout for.
I wrote several pieces in October and November 2017 as XRP volumes were rising. Soon after, Ripple prices exploded from $0.25 to $3.84. Now that the opposite is happening, it’s not a surprise that XRP prices are declining.
Ripple fell 1.24% against the U.S. dollar, bringing the XRP to USD exchange rate to $0.933464.
Ripple (XRP) Price Chart
How should investors react to this information?
To be honest, it depends on your time horizon. If you invested your next mortgage payment in XRP—which is a terrible idea, by the way—then you might be in trouble. Of course, I still believe XRP prices are headed higher in 2018, but there’s no guarantee it’ll happen in Q1.
As such, an extended time horizon might help mitigate your portfolio risk.
We maintain our $10.00 Ripple price prediction despite the current slump in XRP trading volumes. Sure, the crypto has fallen out of favor, but its continually expanding business is likely to draw interest back at some point in 2018.