Ripple News Update
As pessimism grows in the cryptocurrency market, weak hands continue to offload XRP to strong hands.
What do I mean? Well, “strong hands” represent the smart money, the people who move one step ahead of the crowd. By comparison, “weak hands” represent those who buy at the peak of the market peak.
They are the dumb money, for lack of a better term.
Your brain might instinctively associate bull markets with strong hands. But don’t trust that instinct. It’s lying to you.
Strong hands invest during bear markets, precisely because assets trade cheap. They hold those assets through the rough times, then begin selling them in a bull market.
In other words, a bull market means that strong hands are selling to weak hands.
Think about it: prices are going up in a bull market, so whomever you’re selling to is paying more than you did. That’s what allows you to make a profit.
But the opposite is true in bear markets, such as the one Ripple prices are going through. Weak hands are selling to strong hands. A bunch of savvy investors are loading up on cheap XRP tokens in order to profit when the market turns.
This may seem counterintuitive when you see that the XRP to USD exchange rate fell 4.6% overnight. But ask yourself who bought, who sold, and what motivated each side of the trade.
You’ll find that this market truism—of weak hands and strong hands—holds up surprisingly well.
At this point, I feel like a parrot that lives in Warren Buffett’s brain. All I do is repeat what the great investor has always said: “Be greedy when others are fearful, and fearful when others are greedy.”
With this in mind, I’m determined not to let fear force a change in our $10.00 Ripple price prediction for 2018.