After a week of tough losses, XRP finally scored some gains on Friday morning. The third-biggest cryptocurrency rose 3.23% against Bitcoin and 2.59% against the U.S. dollar.
But can Ripple sustain this momentum?
It’s hard to know. On a fundamental level, Ripple is more likely to succeed than Bitcoin, because it isn’t fighting a war against central banks. It is working with the banking community.
This strategic approach, coupled with Ripple’s shared ledger technology, gives it massive upside potential. However, the currency’s future was put into doubt this week when Ripple’s first ever conference, SWELL, failed to stoke enthusiasm in XRP.
During the conference, every attempt at generating Ripple news headlines fell flat. Even a cameo by former Chairman of the Federal Reserve Ben Bernanke didn’t spark a rally.
Ripple tried, again and again, to educate investors about its value proposition, but its message was often technical and underwhelming.
“It’s as though some [investors] are not grasping what Ripple is,” said one Reddit user.
On Monday and Tuesday, the losses were disguised by broader declines in the cryptocurrency market. Once those prices recovered on Wednesday, though, it became clear that Ripple was facing currency-specific headwinds.
The petty gains on Thursday evening and Friday morning are small in the larger scheme of things. What will determine the future of the currency is increased adoption on the far side of the world, in Singapore, where Ripple has established an outpost.
At present, the Ripple to USD exchange rate is sitting at around $0.216255. Meanwhile, the Ripple to Bitcoin rate is near 0.00003825 BTC.
We are slightly concerned that XRP will take an extra quarter to reach our $2.00 Ripple price prediction for 2018. That said, we are not remotely close to altering our actual forecast. We’ve seen these kinds of downturns too many times before.