Bitcoin
Here’s Why Ripple (XRP) Could Be Just Getting Started
Ripple (XRP) has been on an incredible run over the last 24 hours or so. The coin is up more than 50% on its pricing this time yesterday (midmorning US) versus the US dollar and close to 60% versus its bitcoin counterpart.
24-hour volume came in just shy of $4 billion or 227,000 BTC, versus a circulating supply of around $27 billion. For a coin as established as XRP, that increase in volume is a real indicator that this market is attracting a large influx of speculative acquisition right now and, in line with this statement, it could imply that we are very much setting up for continued advance heading into the close of this week and beyond for Ripple and XRP.
So what’s driving the recent action and why do we think this one is going to run further moving forward?
For those new to Ripple and XRP, the company is set up as a frictionless payment work designed to provide a bridge between financial institutions making payments to one another or cross-border.
XRP is the token of exchange used to make transactions on the Ripple network, for anybody (or institution) that chooses to do so. It’s much faster than something like bitcoin or Litecoin and the Ripple network is able to handle far more transactions per second than either of the aforementioned cryptocurrencies.
Ripple Daily Chart
What kept this one so low for so long was the fact that there were 55 billion coins that had the potential to be introduced into the market at any one point and, in turn, had the potential to flood the market with excess supply. These coins are now in escrow and scheduled to be released on annualized basis, meaning this risk is mitigated and markets are more willing to take a position in the coin without threat of dilution.
We are also seeing a dramatically increased degree of market attention surrounding Ripple right now. Mainstream news media outlets such as Forbes and the Sun are picking up on the recent increase in price we’ve seen in XRP and are using this price increase as the basis of an argument for a longer-term buy and hold thesis in the coin.
Further, as outlined by Ryan Selkis here, the huge increase in volume we’ve seen over the last 24 hours sets Ripple up to make $5 million in revenues on the XRP it has sold and, in turn, to potentially generate more than $500 million in annualized revenues for the final quarter of this year.
So what makes us think that this one is going to climb further as time passes?
By market capitalization, Ripple is fourth in this space behind only bitcoin, Ethereum and Bitcoin Cash. Despite this, however, it currently trades at just $0.70 per coin and, this time last week, was trading for just $0.20 per coin.
When you compare this to the thousands of dollars per coin at which the above-mentioned are trading, it immediately looks attractive as a speculative allocation and it looks as though many are searching for reasons to take a position in XRP at current prices in anticipation of supernormal gains long-term.
As more and more media outlets pick up on this potential, we expect that more and more of this sort of volume will flow towards the market and, specifically, towards XRP, not just supporting current price levels but also pushing the coin up higher and closer towards its major counterparts in this sector.
As ever, nothing is certain in this space and we may see a correction near-term but, post correction, we expect a strong return to the overarching upside momentum for XRP.
We will be updating our subscribers as soon as we know more. For the latest on XRP, sign up below!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of Ripple.
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
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Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
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Fundamentals
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According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
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