Ripple (XRP) seems to be undeterred by Bitcoin (BTC)’s uncertain moves. It did fall yesterday like the rest of the market. However, it was very keen on reversing those losses today. The above chart for XRP/USD
on the daily time frame shows Ripple (XRP) in a clear ascending channel. RSI for the above chart is also in a clear ascending channel. It appears that Ripple (XRP) has just begun its next wave up. It is likely to reach a price of $1 or higher during this wave. A few months back, a lot of investors had doubts whether cryptocurrencies like Ripple (XRP) might make similar gains again. However, the past few weeks have made it clear that risk taking is still on the rise in this market.
If anything, braving the storm is going to make Ripple (XRP) investors more confident that the best is yet to come. As the market cap of a cryptocurrency grows, it becomes difficult to make the same gains as before. For instance, it was easier for Ripple (XRP) to go from $0.01 to $0.1 than to go from $0.1 to $1. This is the same 10x gain, but going from $0.01 to $0.1 requires a lot less capital compared to going from $0.1 to $1. Similarly, going from $1 to $10 is going to be even more difficult. However, there are a few very important factors at play that we often ignore.
First of all, when people see the price going from $0.01 o $0.1 and then from $0.1 to $1, it makes them very optimistic about future gains. This means that people rooting for Ripple (XRP) to go from $0.01 to $0.1 were less confident compared to those rooting for the price to go from $0.1 to $1. This is because the latter group had seen what had happened in the past. So, their hopes were higher. Similarly, having seen both of these cycles, those anticipating a rise to $10 will be even more hopeful. The second factor at play here is improvement in fundamentals over time. As the market cap of a coin grows, so does it fundamentals. Ripple (XRP) at price of $0.01 was a lot different than Ripple (XRP) at a price of $1 in terms of fundamentals. The technical indicators, same as before supports a rally to $10.
The market cap of Ripple (XRP) has grown but so have its fundamentals and the hopes of investors. This is what sort of neutralizes the net effect and we see the same thing over and over again. The above weekly chart for XRP/USD
clearly shows that Ripple (XRP) has begun a new trend even though most altcoins haven’t yet. It has broken its downtrend resistance and is already in a bullish cycle. Critics of Ripple (XRP) who criticized it for being a pump and dump scheme should realize by now that the interest in this coin is very real. Coinbase may have its reasons not to list it. Investors in the crypto community (myself included) will have their reasons not to buy or support it. However, it cannot be ignored that a large majority of retail investors truly support Ripple (XRP) and it is very likely that this coin may hold its ground even if the rest of the market crashes.