You know the old say, what goes up must come down? Well, for the last few days that statement is proving to be a truism for XRP.
In the last 24 hours, the price of XRP is down 15.17%.
Which brings up the question: is it time to buy, panic and sell, or HODL?
The debate about XRP and Ripple doesn’t change much from day to day. There are those who believe the company and token represent banking’s present and not just the future. Others are highly critical and denounce the fundamentals of the business.
What Problem Does XRP Solve?
XRP solves a persistent ‘Holy Grail’ style problem that is becoming worse in the connected world. Companies, large and small, are doing business across borders each day. The institutions that move this aggregate sum of money use a moribund system that has high fees and lengthy transaction times. Enter Ripple, which built its company and core vision around creating a new, reliable system that solves those issues.
Why Such a Large Dip So Fast?
If XRP can solve that massive, institutional-size problem, they have a shot at creating a ton of value immediately. When the price dips as it has for the past few trading sessions, people put themselves into a few camps.
Those who believe in the company and XRP will continue to accumulate. They “buy on the dips” because that’s a perfect strategy for dealing with high-growth companies. High-growth companies generate tons of attraction, enthusiasm, and press coverage. The price of companies, or in this case, cryptocurrencies, can rise or drop fast, primarily because of news. Since this type of dip doesn’t involve “fundamentals” and relies on market psychology, long-term bulls keep on buying.
Those traders who don’t care about long-term holding take their profits and get out, looking for greener pastures. That’s the reason sharp, 24-hour declines occur in cryptocurrency. People take profit and weak hands all dump when they see the crowd heading for the exits.
Naturally, there are also those who are overtly negative about Ripple and XRP. Investors who are buying XRP are not purchasing shares of Ripple. They are merely speculating in the cryptocurrency. However, it’s tough to separate the two in many people’s minds.
Ripple continues to announce more interest in their protocol. That’s why investing in XRP will continue to see ups and downs as bulls and bears battle it out. If the company lands one of the central banks it’s currently courting, the price will likely shoot skyward again.
We’re keeping an eye on Ripple and XRP.