As expected, XRP prices took a cautiously bullish step yesterday, rising 1.03% on Ripple news about an expansion to China, the world’s largest market.
Volatility in Ripple prices appeared to ease during the early morning hours, although that might be because fewer tokens exchanged hands this morning than they did last night.
While that lower volatility reduces the chance for spectacular one-day gains, it likely gave Ripple investors some confidence after a week of hard losses. Bitcoin has been sucking up all the air in crypto markets lately, having successfully ploughed through its currency split.
Investors had no idea what to expect when Bitcoin Cash forked off Bitcoin on August 1. There was an incredible amount of uncertainty, but that fog cleared quickly. It took Bitcoin Cash half a day to mine one block, showing us that BTC was in no immediate danger of losing its top spot.
Markets were positively giddy after that tension was resolved, which is why Bitcoin prices are up approximately 65% since the start of the month.
Nonetheless, this bullish run for Bitcoin has come at the expense of our Ripple price prediction.
Important pieces of news—such as Ripple’s expansion into the largest market in the world—do not seem to have penetrated the valuation of XRP prices.
Additionally, reactions were muted to Ripple’s experiments with the “Lightning” network. No one batted an eye when the company successfully combined Lightning payments with its “Interledger” protocol (which is basically a settlement system between all ledgers, permissioned or not).
Investors have short memories and an even shorter patience, so it’s only a matter of time till the Bitcoin frenzy cools off. When it does, investors will re-evaluate the price of “altcoins” like XRP. At that moment, I believe we will see a strong resurgence in Ripple prices, especially if Chinese financial institutions come aboard the payment network.