Could Investor Mentality Have Influenced The Recent XRP Price Drop
Prices of XRP have recently been jumping all over the place. In the space of a week, the price has tripled and then dropped more than 40% following a rally off the back of numerous breaking news stories.
At the time of writing, the cryptocurrency founded by Ripple has dropped to $0.4415 according to CoinMarketCap.
It was down from itâs recent high of around $0.769 that it reached on 21st September according to additional CoinMarketCap data.
The token reached this mark after rising up by around 180% in the space of just a week.
Multiple analysts have explained that the mentality of the investors in the age of virtual currency has played an important role in the strange activity coming from the XRP token. Matthew Newton, a market analyst at the social trading platform eToro, reflecting this sentiment has said:
âThe likelihood is a lot of investors piled in during the rush only to sell when the price started to drop.â
Others seemed to take on the same thought process of Newton including the managing director at the crypto-to-crypto platform Amulet, Marouane Garcon has added:
âWith a lower barrier of entry you have a great deal of malleable people with access to the market. They will enter and exit based off mere influence.â
The co-founder and CEO of the cryptocurrency platform data platform CryptoCompare, Charles Hayter believes that when traders began to buy, others involved in the market followed which started a substantial investment activity.
An expected reaction
As XRP prices dropped significantly in such a short space of time, analysts have said that this is an expected reaction. The crypto token seems to have enjoyed its quick bull run yet it isnât surprising.
âIt is not surprising to see such a sell off.â Says the chief marketing officer at the cryptocurrency data provider Svandis, Chris McClure.
Recent XRP price wonât continue
At least that is according to the CEO of BitBull Capital, Joe DiPasquale who had this to say on the matter:
âXRPâs high last week was largely off the back of a major announcement and did not appear to be sustainable. As with other asset classes, when XRP jumped as much as it did, it was only a matter of time until profit takers sold off their holding to claim the upwards of 80% gained in just a matter of days.â