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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

SEC Postpones Bitcoin ETF Decision Once Again

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The new announcement by the US SEC (Securities and Exchange Commission) states that the decision regarding the potential approval of several applications for a Bitcoin ETF (exchange-traded funds) is once again postponed. This time, the SEC declared that the decision will be made by February 27th, 2019.

The application requesting that VanExk SolidX BTC fund get s listed on Cboe BZx Exchange that was published on July 2nd needs to be given order by the commission within 180 days. Originally, the deadline for doing so was December 29th. However, the SEC decided to extend the period for another 60 days, effectively moving it to February 27th.

The SEC stated that designating a longer period for making a decision was found appropriate, as more time is needed in order to properly consider the rule change.

Cryptocurrencies need a sufficient monitoring mechanism, claims SEC chairman

Recent reports claim that the SEC received over 1,600 comments after requesting the public opinion regarding the ETF applications issue. In the past, the SEC rejected many such applications, some of which were even submitted by SolidX itself. In addition, they also rejected the applications submitted by Gemini, the exchange owned by Winklevoss twins. Brothers were attempting to gain ETF approval ever since 2013, although to no avail.

Other applications were also submitted by Direxion, ProShares, as well as GraniteShares. The SEC rejected them…

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Bitcoin

What to Expect in 2019: BTC, BAT, and Steem

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There are only a few weeks of 2018 left, and considering how bearish and crypto-unfriendly this year was, a lot of investors will likely be pleased to see it gone. Many believe that 2019 will be the year that will correct BTC prices and bring forth the period of great recovery.

But what does that mean for digital currencies? Which ones are a good investment right now? This is something that we will, hopefully, be able to answer right now. Here are the top 3 coins that everyone should keep an eye on in 2019.

1. Bitcoin (BTC)

Of course, we have to start with Bitcoin, the first and largest cryptocurrency. Bitcoin has lost a lot in 2018, and its losses are unparalleled by any other coin. In fact, in terms of market cap, Bitcoin has lost as much as the rest of the crypto market put together.

Many believe that its rapid growth, which started in late 2017 and has brought it to its all-time high, is responsible. That the bearish 2018 was only a one large price correction of the last year’s price surge. Even if this is true, price corrections, luckily, all end sooner or later, and when this one comes to a close, Bitcoin will likely be ready for a big comeback.

2019 is expected to bring a lot that will serve BTC’s…

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Altcoins

The Three Biggest Problems with Crypto

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In this bear market, everybody’s asking the same questions. Why is Bitcoin falling? When will the market turn around? Is this the end of the crypto boom?

However, before we can answer questions like these, we need to step back and do an honest appraisal of where our industry stands and what is really holding it back. Despite its growing popularity, cryptocurrency still struggles to gain mainstream appeal. While crypto has managed to distance itself from the early days, when it was used to buy illegal goods online, the currency still conjures up negative feelings for a lot of people unfamiliar with the technology — and all too often, for good reasons.

Cryptocurrency is still relatively new, which means that many casual users are still exploring different ways to use crypto in their day-to-day lives. Unfortunately, this lack of knowledge leaves a lot of users vulnerable to scammers seeking to take advantage of their ignorance and inexperience.

We’ve contacted various types of people within the crypto community, surveying newbies, traders, investors, and professionals, asking what the biggest problems in crypto are. We found there to be three major problems holding the industry back:

Scammers

Failed projects

Immature technology

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