Here’s Why the Ripple Price is Surging Today
Ripple was one of the top-performing cryptos on Monday as the Ripple price surges more than 16% in a day, which is incredible given that this rally has built up on the back of sheer rumors. We’re analyzing whether there may be any truth to these hearsays.
Rumor #1: Ripple is getting listed on Coinbase.
Rumor #2: The Japan Bank Consortium (JBC) is adopting Ripple nationwide.
Let’s break down each one of these.
The first rumor has made the rounds a few times but died every time a spokesperson from Coinbase negated it. This time, the rumor has taken rebirth as investors look forward to CNBC’s Fast Money episode due to be aired on Tuesday.
Yes, a TV show has rekindled this rumor.
What’s so special about it, you ask? Well, the guests on the discussion panel tomorrow will include Ripple’s CEO Brad Garlinghouse and Coinbase’s President Asiff Hirji—the two men who jointly have the power to pull the trigger on this.
The overly optimistic investors are wishing upon their stars that the two men will finally announce the listing of Ripple on Coinbase. Getting listed on America’s largest exchange means that Ripple will possibly see an instant surge in demand and ultimately price.
However, the odds of that happening, in my view, are pretty slim.
The more realistic speculators are hoping that having the two men in one frame will open an opportunity for dialogue on the subject. If the show anchor gets them talking about this issue, chances are they’ll spill some beans on the possibility of it happening. This could give investors a clear direction as to where Ripple prices may be moving in the near future.
This is a more reasonable take than expecting the two chiefs to announce an outright listing tomorrow. And yet, it doesn’t justify the overnight spike in prices.
This is the classic example of investors buying the rumor in hopes to sell the news. It may not play out well, so we’re remaining skeptical.
Coming to the second rumor, there are unconfirmed reports circulating on social media that the Japan Bank Consortium (JBC) has decided to roll out Ripple’s service at participating banks across the nation.
Recall that this consortium of Japanese banks, which includes more than 60 banks in the country, began testing Ripple’s “xCurrent” service for domestic and foreign interbank money transfers last year.
Ripple stated in December that JBC would be rolling out an API for this jointly built platform in early 2018. (Source: “Japan Bank Consortium Moves to Become Production-ready,” Ripple, December 5, 2017.)
The rumor mill goes that the Consortium has finally rolled it out. There is no official confirmation, which means this rumor, too, may have zero truth to it. After all, why would the Consortium or Ripple itself hold back on breaking such significant news?
In spite of these weak speculations, Ripple’s trading volume has surpassed $1.0 billion in the past 24 hours and is now getting close to $2.0 billion, confirming a build-up in demand for XRP coins.
Chart courtesy of TradingView.com
It is somewhat distressing that investors have kept missing Ripple’s fundamental growth in the past couple of months, during which it sealed a number of new partnerships with banks and payment processing companies. All these partnerships failed to move the needle on XRP prices.
The same investors are now clutching at straws, desperately looking for a means to salvage their losing investments, even if it means buying on rumors in the hopes of selling at a pumped-up price.
Regardless, we’ll be closely following the interview today and reporting on it. You can follow our daily Ripple price forecast and news updates here.