Is Ripple entering the Chinese market? Is Alibaba Group Holding Ltd (NYSE:BABA) secretly running a validator node? What impact would it have on the Ripple price prediction? So many questions, so little time.
Last week was essentially this—a ton of Ripple news without enough time for the market to digest it. To make matters worse, the story about China came out in dribs and drabs, leaving investors with more questions than answers.
That said, we noticed a few positive signs for Ripple prices.
- XRP/BTC is doing better than XRP/USD.
In the last 24 hours, Ripple is up 1.26% against Bitcoin. By contrast, it only advanced 0.64% against the U.S. dollar. This split has occurred more than once in the last week, suggesting that crypto bulls are extracting their gains from Bitcoin’s summertime surge. Considering that these investors tend to be more sophisticated than those just entering the crypto market, the split between XRP/BTC and XRP/USD might reflect a “Smart money/Dumb money” paradigm.
- BTC dominance is well below 50% again.
Early last week, I reported that Bitcoin was leeching off other currencies, as was evident by its greater-than-50% share of crypto market cap. That is no longer the case, thankfully. Bitcoin dominance is back down to 46.4% (at the time of writing), clearing the way for “altcoins” to achieve greater returns.
- Ripple confirms China expansion.
According to CoinDesk, Ripple has confirmed its foray into the world’s biggest market while denying that Alibaba was running a validator node. Many analysts raised a skeptical eyebrow at the wording of Ripple’s narrow denial, because it did not reject the possibility that Ripple is in talks with Alibaba.
From a bird’s-eye perspective, XRP remains as attractive as ever. There might be short-term hurdles to overcome (market purges, regulatory battles etc.), but the 10,000-foot view still shows Ripple making strong advances against Swift’s monopoly on international bank transfers. The upside on that disruption remains greater than Ripple’s current valuation.