Ripple News Update
In yesterday’s Ripple news update, we revealed that South Korean authorities may close a few crypto exchanges and clamp down on anonymous transactions.
This cast a long, gloomy shadow over crypto prices. Many of the top cryptos trended down after the proposed rules came to light.
Ripple defied the pessimism by staying “in the green,” which I think is strange, given the support XRP receives from Korea.
Korean exchanges are frequently—if not always—the top markets for trading XRP. At one point, three of them accounted for 70% of total trading volumes. That number has since fallen to ~45%. However, XRP is still more liquid in Korea than anywhere else, making it an important part of the recent price action.
With all this in mind, you would imagine that XRP crashed after yesterday’s news broke. But that is the curious thing: XRP did not even tremble at the impending regulations.
In fact, XRP blasted off like it was in Cape Canaveral.
Ripple prices rose 37% against the U.S. dollar, bringing the XRP to USD exchange rate to $1.83. On Bithumb, a South Korean exchange, prices reached as high as $2.11.
Ripple Price Chart:
What Is Happening to XRP Prices?
Well, the skeptical argument is that XRP is “drowning in optimism.” Here’s how that argument goes:
- Korean traders are bidding up the price of XRP.
- This leads to a second wave of support.
- Optimism builds in an upward spiral.
- But once Korean traders are curbed by new rules, the selling begins.
- Without Korean trading volumes, the upward spiral implodes.
I’ve spoken to several investors who subscribe to this theory. However, they continue to play musical chairs with their investments, hoping and praying they won’t be the last one standing.
But this isn’t the only theory.
Investors may believe that XRP is finally entering the spotlight. What do I mean? Well, take a look at some of Ripple’s recent PR coverage:
- Ripple CEO Brad Garlinghouse was recently interviewed on CNBC and Bloomberg TV.
- Fortune magazine featured a “How to Buy” XRP guide.
- A petition to add XRP to Coinbase has more than 15,000 signatures.
In other words, investors might be bullish on XRP prices because it’s finally getting popular in North America. It might actually gain more in publicity than it could lose from exchange closures.
Considering that our age-old Ripple price prediction of $2.00 in 2018 is amazingly close to coming true, I don’t think there is any need to alter our forecast. We will monitor the situation closely and update our forecast as needed.