In the last few days, there have been several strategically placed negative news reports coming out about cryptos. First, there was the Satis report that gave projections on cryptocurrencies and most of them were negative. According to the Satis report, XRP could drop to $0.01 in the next 5 years. While this report may not mean much and has been debunked already, it does create some level of uncertainty in people’ minds.
But Satis is not the only negative news coming out lately. Yesterday, the IMF reposted an old article on Twitter, highlighting the negative effects of cryptocurrencies. The article dwells so much on issues like terrorism financing and money laundering. Basically, it sends the message that cryptocurrencies are more likely to have criminal connections as compared to cash, and creates doubts about the future of this market. Given the level of importance that the IMF has in the financial markets, the retweet of this article does indeed serve to spread fear and doubt.
The IMF tweet came at the same time that a Redditor posted about how $1 billion in bitcoin (BTC) was being moved to exchanges, from an address that has been dormant for years. That’s a lot of BTC and if it were to get sold, could cause a dip in the entire market.
All this points to a scenario where the market could be getting set-up for another correction, one that could shave off a few percentage points off from all cryptos including, XRP. But that also means that it could be another buying opportunity. That’s because, from a look at the charts, XRP is now trading close to a year’s lows. As such, it is now firmly in buying territory, and a drop below $0.30 would offer an even greater opportunity to accumulate. On top of that, fundamentals are fully in support of XRP, given that its target is the lucrative cross-border payments market, one that is worth trillions of dollars. And with its increased adoption in this market, the future growth in the value of XRP (XRP) is a no-brainer.
XRP (XRP) rose to $3 in 2017 without any form of adoption. Since that time, it has grown in adoption, which means that its fundamentals are now stronger than ever. In essence, its chances of breaking above its all-time highs are now higher than ever. This makes it practical to accumulate XRP (XRP) in its current price level with a long-term view. Accumulating at current levels can also give a tidy profit if by conservative estimates, XRP hits just $1 in the near-term.