Ripple Drops More Than 30% In A Week As Hype Fades
Ripple’s XRP token fell more than 30% in the space of a week. Pushing lower as sentiment-driven trading fueled a sell-off in the digital token.
XRP fell to as little as $1.18 earlier today, CoinMarketCap figures show.
At this price, the digital token was down roughly 30.6% from the price of $1.70. It hit last Friday and approximately 69% below the all-time high of $3.84 reached earlier this month, additional CoinMarketCap data reveals.
The digital token had recovered somewhat at the time of report, trading at $1.25.
A ‘Tell Tale Sign’
While Ripple announced new partnerships on Wednesday, January 24, markets did not react, meaning that the positive news did not provoke any significant change in price.
Charles Thorngren, CEO of Noble Alternative Investments, described this as a “tell tale sign of sentimental trading.”
“Any other coin would have surged on the news of Partnerships,” he emphasized, adding that “XRP is making international payments and foreign exchange transactions easy and at a discount on its XRapid platform.”
Marouane Garcon, managing director of Amulet, a crypto-to-crypto derivatives platform that focuses on customer success and usability, commented on all the speculation surrounding XRP.
“Investors were accumulating at the lower levels in anticipation of another run,” said Garcon.
“There are still a lot of quasi believers in XRP and this price fluctuation is a prime example of that,” he added.
Iqbal Gandham, U.K. managing director for eToro, offered a similar point of view.
“It’s purely a general market sentiment combined with a knowledge that ripple was much higher a few weeks ago and looks cheap,” he said. “Money comes in, but when a good bull run does not occur people panic on bad general news.”
Ripple’s Bright Future
Regardless of what XRP does in the short-term, several analysts were optimistic about Ripple’s future in the long-term.
“I still believe Ripple has a strong future among mainstream traders who take investment cues” from major media outlets, said Jeff Koyen, CEO of 360 Blockchain USA.
“Ripple continues to increase it platform use and that will add value to coin,” stated Thorngren. “With Ripple being the fastest and most cost efficient of the digital platforms it is no wonder why MoneyGram, IDT Corp and Mercury FX have aligned themselves here.”
As a result of all this, “Serious Investors should take advantage of the prices here while they can,” stated Thorngren.
Garcon, however, offered a different point of view, stating that many market observers are skeptical.
“XRP will continue to float between $1-$2 until they deliver earth shaking news,” stated Garcon.
Article by Charles Bovaird www.forbes.com