Ripple, one of the blockchain products offering solutions to the banking industry with their real time asset exchange through the RippleNet, had several news in the last month, triggering some extreme volatility with several ups and downs, and following a sideways market trend for a pretty long time, which lost the faith of many new investors.
We should be aware of one thing that successful people who invest huge amounts don't care about these 'petty' rise and falls which we are experiencing now, trying to day trade.
We jump once we see gains, and that too, ‘notional gains or losses’ ( if we plan to hold for long term); and feel hopeless and even book loss and exit once we see prices dropping by a significant amount!
Value of XRP rose to almost 0.3, and fell back to $0.19 ( approx), and we have seen several more ups and downs after the swell conference. I even noticed some people who bought XRP at a high, due to FOMO, and sold them in panic during the dip. They are the ones who, without studying the market and the underlying technology makes a fuss about Ripple and their currency, XRP, and even calls it a shitcoin, just by seeing their portfolio go down!
Let me tell you one thing, think Long term!
Check out the partnerships Ripple has with other organisations!
Look at the picture below taken from Ripple.com's official website.
It seems really promising to see so many companies with Ripple, and news is that Ripple is even backed up by Google's developers!
What's more, you can see the tremendous amount of investors who invested in Ripple heavily!
you can check out the list here :
https://www.crunchbase.com/organization/ripple-labs/investors/investors_list
Let's analyse what exactly happened, and why we should choose not to panic if we invested in Ripple!
As I was browsing the net, I came across a few articles in forums where some analysts predicted XRP value to reach to almost $2 by end of 2018, which seems to be a distant dream come true for many investors; but if you look back to January this year, you will feel that $2 is still quite feasible.
Check out the three charts below, with an all time high, with a three month low after the conference, and the price now, which is around $0.2.
The above image is at the all time high, when people believed that Ripple has indeed come up with something disruptive.
There was a major correction after that, which always happen in case of any cryptocurrencies, as people will always try to sell at ATHs.
Now check out the prices Just before the swell conference hype where it increased to almost $0.03 on some exchanges. On this image, sourced from coinmarketcap, we see prices to be nearly $0.287.
If we look at the recent surge before the swell conference, it was merely hype, and speculation.
Some insider news, which are being published now on various threads include some analysts in the Swell conference deliberately calling Ripple to be valueless, and having no significant contribution to the banking system, just to grill them, which set XRP value to fall drastically!
Check out the prices now....
I have kept my mouse over the prices to make you understand what I am talking about, for reference.
It had one positive impact in the overall long run. We can see that it found support in the sub $0.19 region, especially if you take into consideration the load of negative hype around ripple that time. This paved the way for a free fall, only to a 3 month low of about $0.18. The analysts have ties with big investors, who try to analyse the sentiments of the market bu spreading fear and panic in the market, by grilling them in a conference; so peace! These things should't even matter to an investor!
An ideal point of investment will be anywhere around $0.18-$0.2, for a long term hold.
If you look at the previous surge, this dip is not even a major one, especially when XRP was trading at merely $0.006. If there was no support, prices could have gone there as well, but it didn’t, that’s what gave Ripple more confidence, and they are gearing up for some big news in 2018…
I am not a professional analyst, but I can tell you holding XRP will give good returns in the future, especially if you look at previous charts and the current support level after so much of negative news…. Ideal buy zone will be always in between $0.18-$0.21, for a long term hold, and when I say long term, I mean at least a couple of years.
And you can save this post and set a reminder to check back the prices after 2 years. You might as well thank me later that time... :D
Stellar, another competitor, which partnered with IBM, saw a huge surge in the value after the news!
Many people even sold XRP and bought XLM, speculating that it can surpass the value of XRP in a few weeks. Let me tell you one thing, Rumours and false news and hype spreads faster than a wild forest fire in the crypto world, and it hits almost everyone, where an estimated 30% of the people take wrong decisions going with the flow of the Hype! So I would recommend to not fall in that 30% category if you have faith in a currency and want to hold it for long term.
And again, I want to remind you that it's just a recommendation, I would always recommend you to do your own research before investing... Thanks
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