Ripple News Update
As Ripple prices spiral toward $1.00, investors are desperately trying to make sense of the carnage. Some open up about earlier crashes. Others tell stories about how Ripple changed their lives, helped them buy a home, or even start a family.
Not all are so eager to swap tales, though.
One Reddit user grew so frustrated that they started tracking Ripple accounts, desperate to expose any market manipulators. While I admire their resourcefulness, efforts to rationalize this crash are futile. It is herd mentality, plain and simple.
On the flipside, however, Ripple’s freakish rally was also due to herd mentality.
Remember that Ripple was an unloved altcoin before December. News headlines focused on Bitcoin, Ethereum, Litecoin, or indeed anything rather than XRP. It was treated like an awkward cousin, one that’s with the group but kept apart by some undefinable difference.
All that changed on December 7, 2017.
Ripple put 55 billion XRP into a cryptographically secure escrow account, keeping its promise from earlier in the year. And investors, reassured that Ripple would not flood the market, turned the heat way up on XRP.
In less than one month, Ripple prices rose from $0.25 to a peak of $3.84. That was herd mentality, too, whether we like it or not.
Investor sentiment has since turned against XRP, slashing more than 60% from the crypto’s market cap. These losses did not come from any substantial changes, but because FUD (fear, uncertainty, doubt) was sowed into the market.
In the past 24 hours alone, the XRP to USD exchange rate lost 23.16%, bringing it to $1.09.
Ripple (XRP) Price Chart
So, what happens next? It’s nice to know that crowd psychology is playing a role here, but what actionable advice does that yield?
Well, the first thing I expect is a period of consolidation, where both weak cryptos and weak investors exit the market. This will, in turn, lay the groundwork for development in serious blockchain projects, such as Ripple.
Over time, this could act as a “strange attractor” for crypto investment, leading herd mentality back toward the positive end of the system.
In other words, the best decision is to “HODL” or double down—always assuming that you can bear the financial risk—because investor sentiment is likely to reverse at some point in the year.
I still believe in our $10.00 Ripple price prediction for 2018. If that seems outlandish to you, remember that XRP was trading at $0.006523 at the start of 2017. Also, remember that markets are capable of more than just herd mentality; they also have convenient amnesia.