As forecast in our Ripple Price Forecast and Analysis – August 21, 2017, the market could not remain oblivious to Ripple news forever. XRP prices surged 25% yesterday, returning the beleaguered cryptocurrency to levels not seen since late July.
Ripple was firmly lodged at $0.191714 at the time of writing.
Moreover, the XRP/BTC exchange rate continued to outperform the XRP/USD. Ripple gained 29% against Bitcoin, suggesting that even if investors are willing to walk away from BTC, they want to remain in the crypto market.
This is also evident in BTC dominance, which shows Bitcoin’s market cap as a percentage of total crypto market capitalization. When the indicator is above 50%—as it was after the August 1 fork—investors can be perceived as being bullish on Bitcoin.
However, when the ratio starts to trend down, it means there is a rotation of funds out of Bitcoin and into “altcoins.” This downward trend took shape last week, giving the floor to sliding XRP prices.
Ripple floated along at the tail end of last week, which looked like a setup for a rally. Now that the rally has come to fruition, investors are wondering: Are there more gains to come?
Judging by the scale of the Ripple news that caused the rally, there certainly seems to be upside remaining. Ripple’s foray into China, for instance, is still largely an X factor in the company’s progress.
There are massive financial institutions exploring the benefits of blockchain in China, some of which could be drawn to Ripple’s semi-watchable blockchain. In that light, it’s important to remember that yesterday’s surge only took XRP prices back to where they were last month, not to unprecedented heights. And if the China expansion is somewhere in the right tail of expectations, those “unprecedented” heights might still be within reach.
So keep a close eye on Ripple—the drama is far from over.