XRP Has a Sudden Reversal and Leads the Alts Downhill - Coin Observer
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XRP Has a Sudden Reversal and Leads the Alts Downhill

ripple charts march 2018 300x177 - XRP Has a Sudden Reversal and Leads the Alts DownhillThere’s little question that the market for cryptos is volatile. One day the market loves a coin, the next they’re ready to head for the exits. In many cases, a sudden change like that doesn’t even take days.

XRP is a case in point. Yesterday it was enjoying a heady 20% upswing at one point. Now, just a trading day later, the coin from Ripple is trading for around .93 cents.

The day to day fluctuations doesn’t seem to correlate exactly with news from the company.  Part of yesterday’s upswing seems to come from another round of the “XRP is going to be added to Coinbase soon” rumor. The company, for their part, has been releasing news about pilot programs with major players in the cross-border payment space, like Cambridge. The announcements, for the most part, have been good ones. However, those who bought XRP in December and January at all-time highs are significantly far from profit.

Even Hodlers Could Capitalize on Short-Term Price Swings

when moon 1024x683 - XRP Has a Sudden Reversal and Leads the Alts DownhillIt’s a somewhat strange situation, considering that positive news about fundamentals barely causes a blip in the price, but the Coinbase rumor excites traders. It could be because the “story” of mooning based on a Coinbase listing is more easily told. However, it’s not like XRP is hurting for trading volume. Yes, being on Coinbase would increase the profile of XRP, but so does adoption by target companies. In any event, XRP is a staple for traders, largely because a battle between bulls and bears ensures the type of volatility where day trading profits accelerate.

Keep in mind, LTC already trades on Coinbase and has half the trading volume of XRP. It seems unlikely that additional exchange listings will actually accelerate the valuation of XRP. Overall, it’s going to take real-world usage to justify a higher coin price and market capitalization. Naturally, that could be said about just about every cryptocurrency going, including Bitcoin.

Should HODLers start trading some XRP every day? Even those who believe most strongly in Ripple’s vision of XRP could dedicate some funds each day for speculative trading. That way they would be able to cash in on some of the wide variations in price to make additional profits instead of just passively holding.

For people who simply can’t stand trading, then hanging on for the long-term is the obvious solution. When the coin price dumps, they can simply scoop up more, and dollar cost average their way to fame. That’s a counter-intuitive and somewhat risky way to invest in cryptocurrencies, but over the long run has the chance to return the most. Trading and holding are both risky endeavors, so managing a day to day strategy will come down to each investor’s personal appetite for speculation.

When waiting for a moon shot, it’s crucial to pick a strategy that feels comfortable and gives you a chance of improving your returns. If worse comes to worse, most people could continue to buy on the rumor and sell on the news.

XRP is definitely not the only alt in the red today. In fact, almost the whole class of investment is drowning in a sea of red ink. Gutsy accumulation during a downtrend is an option for the most patient, deep-pocketed investors for now. Thanks for stopping by and reading.

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