In the last 24 hours, XRP prices jumped roughly 6.57% against the U.S. dollar and near 4.77% against Bitcoin to reach a level of around $0.217847. It was a happy reprieve from the weekend bloodshed in cryptocurrency markets.
None of the previous Ripple news—much of it bullish—could quell the market reaction to China’s banning of initial coin offerings (ICOs). Upon hearing that the world’s largest market would audit or close certain exchanges, investors responded with panic and doubt.
Despite this, Ripple prices are up approximately 6.02% from seven days ago, 21.4% from a month ago, and 3,240% from the start of the year.
Trading volume was unusually low on Saturday, with only $51.19 million worth of XRP coins changing hands. However, this was an aberrant fall. Trading volume returned to a more normal $117.09 million on Sunday.
The most active exchanges were once again Bithumb and Coinone, both which are housed in Korea and deal in XRP to KRW transactions. Together, they accounted for roughly 50% of all trading activity.
When you widen the scope to include Korbit, the fourth most active exchange, then XRP to KRW transactions accounted for 63% of total transaction volume.
Bitcoin dominance remained below half of all activity at 47.5%. Meanwhile, overall crypto market cap suffered a setback to $146.7 billion.
Ripple faces a complex set of headwinds that are common to the cryptocurrency market. For example, it faces political risk and currency risk. But it is confusing to watch investors treat XRP as if it runs parallel to public blockchains like Bitcoin and Litecoin.
It does not.
Ripple is an enterprise blockchain that works with existing financial firms. It doesn’t want to wipe central banks off the face of the Earth, nor does it want to disrupt the entire banking system.
Ripple only wants to disrupt SWIFT, the global payments processor that has a virtual monopoly on sending money internationally.
Its goal remains much more achievable than Bitcoin or Litecoin’s, yet it trades at a significant discount compared to its peers. As such, we believe that another rally is in order. We maintain our Ripple price prediction of $2.00.