Ripple (XRP) finally caught a tailwind on Monday as funds drained out of Bitcoin and into altcoins. There were gains all the way down the top 10 list (with the exception of BitConnect (BCC)), but XRP came out the winner.
This apparent favoritism might have to do with the outsize damage that Ripple suffered last week. For those who missed it, XRP prices fell dramatically based on underwhelming news from the company’s first-ever conference.
Investors hoped the Ripple news would be explosive—though no one sketched out what that meant, exactly—and were disappointed when the conference fell short of expectations.
There was no Wolf of Wall Street-esque sales pitch. No Steve Jobs-inspired presentation. It was much more technical and academic than that, which is actually a good thing for the currency’s long-term development, even if it seems dull in the moment.
In a way, the staid affair was a reflection of Ripple’s management. They are the kind of people who play their cards close to the chest.
For instance, when asked if Ripple is working with American Express Company (NYSE:AXP) or Visa Inc (NYSE:V), CEO Brad Garlinghouse danced around the question, saying: “One of the challenges, I suppose, of working in an industry like this is it’s regulated. There are confidentialities….We announce our customer relationships when our partners are ready to announce that.”
That’s not a “yes” and it’s not a “no.” Investors clearly found that kind of answer frustrating, so they took that frustration out on XRP.
However, it appears that time heals all wounds, because XRP is back above $0.21 barely a week after the conference. It is being driven by the twin tailwinds of amnesia and a reverse rotation.
And while Ripple is likely to continue this trend, investors new to the cryptocurrency space should understand that corrections like the one that just passed are normal.
It should surprise absolutely nobody to see XRP drop 20% one week and rise 50% the week after. That’s simply the scale of growth we’re dealing with.
With that in mind, you should know that the Ripple to USD exchange rate advanced 8.77% on Tuesday morning. It was $0.212107 at the time of writing. Meanwhile, the Ripple to Bitcoin rate jumped 11.24% to 0.00003726 BTC.
Daily Ripple Chart
We continue to believe that XRP will reach $0.40 before the end of the year. We did not abandon that Ripple price prediction when investors were bearish on the currency, so it’s unlikely that we’ll change our mind now that Ripple is ascendant once more.