Once the cryptocurrency world started to move its focus away from Bitcoin and towards other players, a lot of attention started to settle on Ripple XRP. The reasons are obvious, XRP is backed by a number of banks and other major players, meaning that it has the exposure that should be required for success in the market. However, these underlying factors haven’t been reflected in the price of Ripple XRP, which has struggled to gain momentum in recent months. In this article, we’ll take a look at the factors which lie behind Ripple XRP’s recent performance and explore reasons why investors should feel more bullish than they currently do.
Ripple is only following the market panic
This is probably the main reason why Ripple XRP’s performance lags its true potential. The recent performance of Bitcoin and other cryptocurrencies has given many investors cold feet about the whole space. Since many of these investors can be very guilty of falling into a ‘herd mentality’ when events such as this take place, there is every chance that they are offloading cryptocurrency assets, regardless of the underlying fundamentals of any particular cryptocurrency.
The market is unaware of Ripple XRP’s value
While the backing that several major institutions have given to Ripple XRP is a very positive sign for the currency’s long-term prospects, it’s entirely possible that the market has not yet realised quite how important these will be. Despite the recent speculative bubble, no cryptocurrency has been adopted by a large number of mainstream users. It’s likely that Ripple XRP or another cryptocurrency will have to enter the public consciousness before the value of backing from financial institutions can be truly realised.
Ripple XRP’s fundamentals should give it a bright future. However, it may take some time for the market to catch up.
Source: https://www.youtube.com/watch?v=oMSXun1zM28 – Great Video By 24/7 Cryptocurrency News
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