Victory laps are obnoxious, but sometimes they are needed for posterity. Since our Ripple price prediction explicitly forecast the current surge in XRP prices, we believe this situation certainly qualifies.
Ripple prices jumped 60% yesterday as more than $2.0 billion worth of XRP tokens changed hands. It was a dramatic turnaround from the previous week, in which prices were sliding into double-digit losses.
The XRP/USD exchange rate nearly doubled, from $0.154259 a week ago to $0.286997.
The XRP/BTC rate, which is composed of money already in the crypto world, outperformed earlier in the week because of a reverse rotation of funds from Bitcoin into Ripple. Investors were compensating for the massive flows into BTC after it survived the August 1 fork.
However, that spread between XRP/USD and XRP/BTC closed on Tuesday.
Ripple advanced more aggressively against fiat currency, indicating that novice crypto investors were surfing the first round of returns. It is a typical market pattern.
The first wave of gains are brought on by the “smart money,” only to be followed by a second round of gains from trend followers. It is possible that a third round of speculative investment will follow, though investors should not take that as a foregone conclusion.
There are still political and regulatory risks aplenty. In order for our Ripple price prediction of $0.50 to come to fruition, there needs to be an unbroken streak of good Ripple news. At present, the market is still too fragile to accommodate much tension.
The next day of trading should sustain this positive trend. That said, watch for signs of deceleration in trading volume as a leading indicator, because 60% daily gains are not sustainable. Ripple prices may have to take a breather until another catalyst appears.