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Here’s Why Ripple (XRP) Won’t Fall Any Further

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Ripple (XRP) ran to more than $3.20 a piece during the weekend just gone and, in doing so, recorded an all-time market capitalization high above $125 billion. This coin has been one of the standout performers from the last three months and it’s probably fair to say that, outside of bitcoin, it’s the coin that’s garnered the highest degree of mainstream speculative attention – that is, capital entering the space to speculate on XRP that otherwise hasn’t been allocated to cryptocurrency historically.

XRP Daily Chart

XRP Daily Chart

Right now, however, and as priced on CoinMarketCap, Ripple goes for around $1.92 a piece. At that price, the coin’s market capitalization comes in at just shy of $75 billion – 40% off highs, with the 40% decline coming on the back of just a few days of trading.

News media is calling time on what it refers to as the XRP bubble and skeptics are rushing to support this opinion.

There’s one part of the story, however, that nobody seems to be talking about. If they were, the current decline would be far more contained that it is and sentiment surrounding the wider cryptocurrency markets – and especially Ripple – would be far more buoyant than it is right now.

So what is everyone missing?

A few days ago, and basically without any pre-announcement, the above mentioned CoinMarketCap dropped all three of the major South Korean cryptocurrency exchanges from its price calculations.

Why is this important?

It’s a well-known fact within this sector that the SK exchanges consistently price the assets they offer at a 30% (approximate) premium to the rest of the world. Be it rooted in demand, optimism, high fees, regulation, whatever, this is a fact.

With many coins, this isn’t too much of a big deal. The vast majority of bitcoin volume is transferred across Japanese exchanges. This is true also of coins like Ethereum (which also has high volume in Europe) and Litecoin.

With Ripple, however, a large (dominant) portion of the XRP that’s traded is traded across SK exchanges. This means that the 30% premium impacts price considerably, as measured on a global scale.

So when CoinMarketCap took this volume out of the equation, a circa 30% dip would be expected pretty much instantly, given the website’s dominance in this space as things stand.

But that’s not all.

As noted, XRP is down more than 40% off highs, so some reading might be asking the question – why the extra 10% plus decline?

The answer is rooted in sentiment.

When the price of an asset starts to fall, people who own that asset start to sell out in an attempt to limit losses. This selling results in further decline and has a sort of snowball effect on price. The further price falls, the more people sell and the more price falls, and on and on.

On and on, that is, until common sense returns to the markets and people start to realize what’s going on and – in turn – start buying the asset in anticipation of price bottoming out and an eventual return to the upside.

We think XRP is at that point right now.

A 40% decline is substantial in anyone’s books and, when considered against the fact that nothing is driving the decline outside of a calculation alteration and a subsequent sentiment slide, it’s tough to see things dipping beyond current levels.

And when things start to turn around, they are going to turn around fast.

That’s why we like XRP at current prices more than perhaps any other coin in the market. It’s taken an amplified (and unjustifiable) impact on the SK listing alteration and, in turn, it should see an amplified recovery once markets regain some sense.

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

What Caused So Many Investors to Turn to Bitcoin in 2017?

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Bitcoin (BTC) has been growing increasingly popular in recent years, especially in the last two. About five weeks ago, the coin celebrated its 10th birthday, however, while it has been an entire decade of its existence, it was basically unknown to anyone who is not a particularly interested in new technologies. This all changed in 2017, when Bitcoin’s price skyrocketed from $1,000 to $20,000, making it the biggest trend of the year.

Suddenly, the entire world heard of its name, and cryptocurrencies finally got their place under the spotlight. Investors continued to arrive at the crypto space, cash was flowing, hundreds of new coins emerged, and more optimistic analysts predicted Bitcoin’s price going even higher, potentially reaching $50,000, $100,000, and more.

However, as we know today, it was not to last. 2018 was barely a few weeks in when the market crashed, the prices started dropping, and investors started selling. The profits were quickly lost for anyone who did not cash out in time, and these days, Bitcoin’s price sits at around $3,812. The crash reminded everyone that cryptocurrencies remain as volatile as ever and that they still pose a risk for investors. But, people already knew this, so why did they invest in the first place?

Chart courtesy of TradingView

Bitcoin is alluring

The first thing…

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Bitcoin

Top 5 Presidential Candidates Thoughts About Bitcoin

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The cryptocurrency space is growing larger and has more impact on our everyday life with each new year. Despite the low prices and market crashes in 2018, the situation on the market seems to be taking a turn for the better, especially after a new surge that started on February 8th. However, as we progress through another year of cryptos’ fight for survival and adoption, the 2020 US Presidential Elections continue to approach.

With that in mind, it might be worth knowing what the current major Presidential candidates think about the crypto space, and Bitcoin (BTC), in particular. Of course, no one can know who will get elected and whether the next US President will be a crypto investor or someone who will have no problems with imposing even stricter regulations that might limit the market’s potentials.

Even so, we can at least see what they had to say about the crypto industry, and form some sort of expectations regarding the future based on that. It should be noted that the list does not include every candidate, only the major ones, and those who decided to take a notable stance towards Bitcoin.

1) Cory Booker

Let’s start with the Democratic candidates, the first of which on our list is Senator Cory Booker. Unfortunately, Sen. Booker did not reveal what his thoughts are on Bitcoin and the crypto industry,…

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Bitcoin

Why Chinese New Year Affects Bitcoin (BTC)

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Bitcoin (BTC) lost about $100 in value in the last week, and, while reasons behind the drop in crypto prices can often be hidden and unclear — this time, that is not the case. The reason for this drop is believed to be the celebration of the Chinese New Year.

The New Year celebration was over more than a month ago for most of the modern world. However, things are a bit different in China. This is a country which is considered to be one of the oldest ones in the world, with a long and complex history. The country’s traditions are fascinating to many around the world, as so many of them are different from western culture. One of these traditions is the Chinese New Year.

The New Year celebrations in China start on January 28th, which was a week ago. The New Year itself is today, February 5th, although the celebrations and festivities are going to last until February 19th. For the people of China, and all those around the world who follow the country’s tradition, this is the time to relax, take a break, and perhaps travel and visit friends and family. But, what does it have to do with Bitcoin?

China and Bitcoin

Those who are new to the world of cryptocurrencies have likely already heard many stories about China banning Bitcoin trading and…

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