Buy the news, sell the rumor.
Ripple goes up 14%, comes down 14%, speculators get angry at Coinbase, and some money changes hands. That’s the way that the Crypto world goes around. Japan announced their banking consortium will be making a deal with a Ripple powered mobile app, and France’s Bitit is now offering Ripple for purchase. Ripple is trading in high volume, translating to high potential for a win, and long term the many use cases for Ripple make it a fairly safe play.
My Thoughts on Ripple (XRP) Price and Rumors in 2018
During the downside move on the hourly chart of the XRP/USD pair, yesterday’s short-term connecting bullish trend line with support at .00009400 was broken It opened the doors for more volatility and the price is now declining below .00008400. An initial resistance on the upside is around the 23.6% retracement level of the last decline from the .0009802 high to .0008928 low.
The last couple days have been a whirlwind for me as I watched Ripple rocket up 14% over 12 hours, I am still new to the crypto game having only invested about eighteen months ago, these wild swings still catch me off guard. Full disclosure, Ripple is not yet in my portfolio, although if I get paid this week for a small construction job, then I will probably buy some. At writing it is sitting at 0.00009428, and it is a matter of personal cash flow you see, not about whether the price has achieved a 10% rise in the last few hours. This is definitely a coin I will add to my collection, I see huge promise, but at this point I think the price will remain somewhat depressed over the short term. Those who claim that they can foresee massive gains in short time is blowing smoke, my personal strategy is to treat these coins like they are Pokemon, Bitcoin is recognizable like Pikachu, but Ripple is versatile like Tyranitar.
Bitcoin is only ten years old from whitepaper to today, in comparison, when Apple was ten years old their flagship product the Mac hadn’t even been invented yet, I find it helps to scale back and look at historical timelines when it comes to crypto, because these technologies are so new I think it’s easy to lose the forest for the trees. I am very optimistic about the future of digital value storage away from the hands of predatory inflation by governments, and I am certainly amazed at the plethora of use cases available to blockchain technologies, Ripple in particular. I see 2018 to be a continuation of the general trend of 2017. As people lose faith in old systems, new technologies and opportunities abound. The future of this space looks bright, and 2018 looks like a year of massive disruption in conventional markets and shaky confidence in the continued status quo. Generally, my Free Advice to any crypto trader try not to get discouraged in the day to day and take a longer view.
The markets are being heavily manipulated by social media, like Facebook, Twitter, and Reddit, into pump and dump scenarios. The markets of the United states and other countries were manipulated in a similar way in the early nineteenth and twentieth centuries. Eventually these things will simply be regulated out, whether through controls put in place by exchanges themselves or the greater crypto world in general, and as capital continues to trust crypto assets as a continued store of value, we will likely see larger market capitalization across the board leading to greater market stabilization. Until that time, put your big girl panties on.
I expect over the next twelve months to see Bitcoin continue to gain value while shedding market cap to other coins like Ripple, but I believe that Bitcoin will be the price leader because it was the first mover, and has the highest trust at the moment. The other blockchains may prove to be more useful, but so far Bitcoin has proven to be a fantastic speculative vehicle.
What does all this mean? It means that although great opportunity exists for people to invest in wealth creating assets, the word investment does not apply every time you trade an alt coin. The word investing has become vogue, much like entrepreneurship, and it becomes even more difficult to find real value among the plethora of options available. The biggest coins are still fairly safe bets in my opinion over the medium term, and I eagerly await any news coming from Russia and Asia concerning adoption of this technology.
But you already knew that 😉