Crypto markets bounced back with vigor yesterday, landing above $150.0 billion in crypto market cap. The resurgence was a good piece of Ripple news for XRP, which had begun to slide over the Labor Day weekend.
Now Ripple prices are up roughly 6.74% to around $0.222557. Meanwhile, trading volume reached $242.64 million, which is considered a constructive sign for XRP.
There was approximately $1.5 billion changing hands when Ripple was sitting near $0.30 in August. Getting back to that level of trading activity is priority number one right now.
The driving force for that higher trading activity appears to be coming out of South Korea, of all places. Exchanges like Bithumb, Korbit, and Coinone all trade in XRP/KRW, and they are contributing outsize volume to Ripple’s transaction volume.
For instance, Bithumb itself takes up 50% of the volume, far more than any other. This Korean activity has largely taken place on the bullish side of trades, driving the XRP coin price up by four digits during recent months.
That said, central banks and other financial watchdogs are starting to put the brakes on crypto markets by warning against initial coin offerings and the cryptocurrencies that encourage them.
For instance, the Russian Central Bank—which has generally been open to the idea of blockchain technology—released a report saying that “the high risks of circulation” make it “premature” to allow cryptocurrencies on standard exchanges.
At the same time, Canadian regulators said the “veil of anonymity” in cryptocurrencies can cause policing issues.
This is discouraging because privacy is widely considered a feature of cryptocurrencies, not a bug. The fact that regulators see it as the latter might rock crypto markets back in the coming days.
All this is by way of saying that political risks are still important in any Ripple price prediction. They must be accounted for. But even with potential headwinds, we still maintain our Ripple price prediction of $1.00 by the end of 2017.