As forecasted, XRP prices rebounded from their midweek blues, gaining roughly 4.2% to reach a level of around $0.229199.
Once again, the surge came courtesy of Korean traders, not any juicy piece of Ripple news.
A quick analysis of trading volumes shows that more than 72% of the activity took place on XRP/KRW exchanges, which explains why XRP moved less relative to BTC than fiat currency.
As to why so many Ripple coins are changing hands in Korea, no one really knows. Since there is a serious lack of concrete answers, the most we can do is speculate.
For instance, speculators might be reacting to recent signals from the Korean government. They appear eager to regulate cryptocurrencies, although that would mean giving the cryptocurrencies legal status in the process.
The tone of the proceedings is best characterized as “cautiously optimistic.” Regulators seem to take the blockchain’s disruptive power very seriously, yet they are unwilling to cede control entirely to a decentralized platform.
It is possible that some Korean investors heard these announcements as a starting gun for cryptocurrency trading. If so, it would explain the surges in Bitcoin, Litecoin, and now Ripple.
However, there could be other reasons that explain the sudden activity on Korean exchanges.
While I personally do not have any information to that effect, investors should understand that whoever is buying XRP might realistically want to flip it for a profit, and that would lead to a correction in Ripple prices.
Ripple certainly appears to take two steps forward and one step back, but that still leaves it further along than it was before. Moreover, after enough examples of its resilience become known to the market, we may start to see greater confidence in the long-term Ripple price prediction. This would lead to less volatility and greater momentum to the upside.