Novice traders in the crypto space suffer from illusions that can, at times, hurt our Ripple price prediction. For example, many of them believe that every “altcoin” is made in the image of Bitcoin, and therefore is affected by the same news as Bitcoin.
This is patently untrue.
What qualifies as Ripple news is not necessarily what qualifies as Bitcoin news. And vice versa. Bitcoin is not affected by Ripple hosting a meeting of the world’s central bankers because it aims to destroy central banks. Meanwhile, Ripple wants to work with central banks.
In the same way, Ripple prices should not be affected by the civil war between Bitcoin and Bitcoin Cash. And yet that is exactly what’s happened.
In fact, nearly all price movements in recent days can be traced back to the Bitcoin debacle.
Here’s what happened:
A prominent figure in the crypto community wrote a letter claiming that Bitcoin Cash would take over the original Bitcoin in six months. That letter gained significant support from key figures in the community, including from Ethereum founder Vitalik Buterin. (Source: “Bitcoin Classic Closing its doors,” Bitcoin Classic, last accessed November 15, 2017.)
But it was just a letter…it carried no binding force or authority…
Investors could have shrugged at it and moved on, but cryptocurrencies are too poorly understood for that kind of reason to triumph. Bold statements from an established player in the industry—even if it is pure opinion—are more than enough to swing markets.
As a result, Bitcoin Cash surged, Bitcoin plunged, and Ripple hung in limbo.
Now that a little time has passed, sanity is finally creeping back into the mix. Investors are returning to Bitcoin (as is evident from BTC dominance) and freeing altcoins like Ripple from a dynamic that it should never have been involved with in the first place.
In the last 24 hours, the Ripple to USD exchange rate rose from $0.206673 to $0.210062, an increase of 1.64%. However, the Ripple to Bitcoin rate depreciated 8.18% to 0.00002927 BTC.
Daily Ripple (XRP) Chart
South Korean trading desks continued to account for a significant portion of total volume, with Bithumb making up 41.5% of the total, and Korbit and Coinone adding another 7.68% and 7.46%, respectively.
Hedge fund billionaire Mark Novogratz thinks Wall Street is six to eight months away from dipping into cryptocurrencies, which I take as an incredibly bullish piece of Ripple news, because it heralds an explosion of trading volumes, greater structure in the market, and differentiation among types of blockchain. Ideally, this would make Ripple less sensitive to unrelated events, thus helping it accelerate to our $2.00 Ripple price prediction.