Ripple News Update
Hopes for an XRP recovery were dashed on Thursday morning as the third-largest cryptocurrency recorded its second consecutive day of losses.
On a more positive note, Ripple was hardly alone. The top 25 cryptocurrencies by market cap plunged as well, with the notable exceptions of TRON and Tether. This downward trend caps off a horrific quarter for XRP prices.
Let’s take a look back over Q1…
At the start of January 2018, the XRP to USD exchange rate reached as high as $3.84. It seems like a distant memory given the bloodbath of the last few months, but it’s important to recap how we arrived at the present situation.
The bearish turn began when CoinMarketCap.com, a leading web site for cryptocurrency prices, removed South Korean exchanges from its XRP price calculation.
Ostensibly, this was done because Korean prices were miles above everyone else’s, but it had the side-effect of scaring investors out of their wits. Many woke up one morning to find $20.0 billion erased from Ripple’s market cap. This led to a rapid sell-off.
Before the market could rebalance, rumors started trickling out of South Korea about a China-like cryptocurrency trading ban. A second round of selling began, after which there was little anyone could do to stop the bleeding.
XRP prices continued to unravel even when Korea refrained from a full-scale ban, choosing instead to target anonymous trading and money launderers.
Today, the XRP to USD exchange rate is trading around $0.49.
Even with this disaster-ridden quarter, XRP prices are still higher than they were in October 2017, and much higher than they were in April 2017. I think it’s important to keep that perspective in mind, because cryptos always move in a “two steps forward, one step back” kind of tango.
In any case, we hold to our Ripple price prediction, which suggests the cryptocurrency could hit $10.00 in 2018. That time horizon might need tweaking if the bearish spiral continues, but we still believe that XRP is headed to $10.00 in the long run.