Anyone who has been trading the weekly charts has made loads of money if they made a short entry in February this year. That’s because, amidst the news and all, the charts have been consistently bearish all through the year.
However, for a good portion of cryptos, the charts are now near their lowest points in a year. One such crypto is XRP (XRP). XRP has reversed all the gains it made in Nov/Dec of 2017, and is now trading at October 2017 prices. This means that if Nov/Dec pump was artificial, then XRP is now back to the norm. Interestingly, the drops in price have begun to slow down now that this asset is back to an entire year’s low. It’s an indicator that selling volumes are thinning out. Most of the people left in the market are now long-term hodlers, and most of the sellers have now excited the market.
Going forward, XRP is likely to enter several months of consolidation, before a gradual increase in price starts showing, going into 2019. For savvy investors, this is the best time to accumulate XRP, when the price is quite, and with little upside or downside movements. It’s the best time because buying in a bull market means that your risks increase as the price gains, since you are never sure of when it will hit a peak.
Think of someone who bought XRP at $3 in December. They took a huge risk that led to massive losses by buying at the peak of a bull run. Similarly, anyone who has been buying since January has made losses as the price kept dropping. This is commonly referred to as catching a falling knife.
Buying into XRP now that it is at a year’s lows is not only a low-risk entry based on the charts, but also because the fundamentals of XRP have changed radically since September 2017. At the moment, XRP (XRP) has stronger fundamentals than it had in September. Back then, people were buying into XRP (XRP) on the basis of its potential. It was basically buying into a promise of adoption.
Today, that potential has been actualized. Banks all over the world are going live with XRP. The process may not be smooth, but so far, XRP (XRP) is pretty much the most adopted crypto in the real world. This will ultimately reflect in its price.
XRP (XRP) managed to hit a high of $3 on nothing but speculation. Logically, now that this promise is getting actualized, it will most likely rise higher than its hype-driven high of 2017. No one can accurately, predict how high prices, but in a 2018/2019 bull run, XRP (XRP) could reach close to $10 going by how other tech assets have performed in the past, after going through price turmoil. Such a move will reward those who catch it at the bottom and that’s somewhere between $0.30 and $0.20.