Ripple Price Forecast and Analysis – August 30, 2017

ripple price prediction
Credits: pixabay.com/geralt

“It’s too quiet,” is a line that occurs in most awful movies, but it sometimes feels true in investing. When volatility eases up for a moment, everyone gets uneasy because it’s too quiet.

That is the general feeling right now in the cryptocurrency market.

A brief lull in Ripple news, not to mention a slow day across the market, has left XRP prices standing still. The currency is down roughly 0.02% to around $0.221209.

The absence of volatility is interesting. It happens to coincide with a drop-off in trading volume, which is something of a pattern with Ripple. Large trading volumes instigate big price swings.

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While this is true in other assets as well, it is particularly relevant to the Ripple price prediction, because the surge in volume is always stacked on the same side. When there’s a strong bid, volume accumulates on that side, and vice versa for a strong ask.

Two possible reasons can explain this trend:

  1. There are a few big money crypto investors making outsized bets that move the market.
  2. Or there is a lot of trend-following going on in the market.

In fact, these two reasons are not mutually exclusive, so it might be both of them.

What’s important for retail investors to keep in mind are the long-term fundamentals. Since those will ultimately steer prices, it’s essential for yield-hungry investors to understand why some cryptocurrencies are better than others.

Analyst Take:

For instance, the fact that Ben Bernanke is headlining Ripple’s first conference matters more than its 24-hour price change. And the fact that Ripple is expanding into China is certainly more important than either if your end goal is knowing where XRP prices will be a year from now.

That’s because the underlying success of Ripple is what will determine its price over the long haul. Bit by bit, the market will translate its success into phenomenal returns.