Did Ripple (XRP) become invisible while I wasn’t looking?
If not, someone needs to explain to me why investors are ignoring it. Only $62.5 million’s worth of Ripple changed hands on Sunday, as opposed to last week, when as much as $220.1 million was traded in a single day.
By contrast, investors were salivating over public blockchains, such as Bitcoin (BTC) or Bitcoin Cash (BCH).
Bitcoin Cash appreciated 44.7% over the last seven days. It rose by such a large margin that BCH briefly eclipsed Ripple as No. 3 on the list of most valuable cryptocurrencies by market cap.
There’s only one explanation for this sudden optimism: Investors were spooked by Bitcoin’s recent hard fork—which yielded a new currency called Bitcoin Gold (BTG)—so they fled to alternatives like Bitcoin Cash.
But this dynamic is unlikely to last. Markets have short memories, which makes them incapable of hanging on to solitary trends for an extended period of time. They eventually revert to long-term trends, which, for Ripple, might mean a return of trading volumes.
Sooner or later, fundamentals must determine price dynamics. That’s one reason why this writer prefers buy-and-hold investing. It is less stressful and oftentimes more lucrative.
This is especially true of the cryptocurrency market, where prices rise or fall by double digits every week. It’s incredibly dangerous to trade the swings given that level of volatility.
As a result, we consider it an opportunity that the Ripple to USD exchange rate barely moved on Monday morning, inching up 0.02% to $0.202962. It is yet another chance to get this cryptocurrency while it trades in the bargain bin of cryptocurrencies.
Daily Ripple Chart:
Regardless of the day-to-day Ripple news that emerges, the fact remains that XRP is solving a real problem in the market. It is making international payments much safer and faster, and doing so on a blockchain. Those fundamental drivers will determine the long-term Ripple price prediction, which we estimate will pass $2.00 sometime in 2018.