I am not a financial advisor nor am I any kind of financial expert, however, I am an expert at analyzing trends. This is not financial advice.
DO NOT PANIC SELL YOUR RIPPLE (XRP) because you see it retracting a little after a Moonshot.
A trend that I have been seeing in the Cryptocurrency market is that when the Bitcoin price is down, it’s usually going to bounce back up shortly after. Typically you will see one or more of these scenarios:
- Whales (people holding large amounts of Bitcoin/Altcoins) are taking profit for personal use, or to fork into new Altcoin investments.
- Regular Joe investors using Bitcoin to buy Altcoins (Every other Altcoin can be purchased with Bitcoin).
- Newbie Traders succumbing to FUD (Fear, Uncertainty, Doubt) and selling their investments, often times at a loss.
- Wall Street spreads FUD in order to buy more Bitcoin at a discounted price.
Typically the price of Bitcoin will go down and you will see the money being forked into the Altcoin market. A perfect example of this is the run that Ripple (XRP) has had over the last month.
If you go back and look at the trade volume and where it is coming from, you will notice that a large portion of the movement in Bitcoin is coming from the Asian exchanges, in particular, those with users that are primarily in South Korea and Japan. When you also look at where that money has been going you are seeing that South Korea, Japan, and China have been going crazy buying Ripple (XRP)!
Those of us that were early investors into XRP have seen some ridiculous returns! I myself bought into Ripple when XRP was trading at 23 cents USD. I at the time had been forking some of my Litecoin profit into XRP using the Evercoin app on my phone. I had been tempted to take some profit when I saw it well over 3 dollars but I continued to HODL (Hold for those that are new to the market). Last night I was out and I had noticed that there was some retraction in the price of XRP, so I figured I’d take advantage and buy some more to add to my healthy core position. I started the Evercoin app and went to set up the transaction and got this message:
This is a very good sign in my opinion. As the XRP gains popularity, acceptance, and as more financial institutions begin adopting the Ripple Network for their transactions the price of Ripple will continue to increase as the months go by. When a very popular crypto exchange app like Evercoin doesn’t have enough supply of a currency that is usually a very good sign. That means people are buying and if you have a strong core position that means some mega huge gains.
When I woke up this morning I had noticed that the price of XRP had dropped about 50-60 cents I was pretty confident that some of the folks that had strong core positions and bought in around the same price I did, were taking profit and forking it back into Bitcoin!
I actually bought Verge (XVG) and when the price went up I sold my position and forked my profit directly into Cardano (ADA).
Do not panic when you see Altcoins retract in price after a massive buying run in the market. See the pattern, Bitcoin goes down, Altcoins go up. Altcoins go down, Bitcoin goes up! People will routinely move their profits around while typically keeping a strong core position (strong core investment) in a Cryptocurrency! I sold a very small portion of my Ripple and forked it back into Litecoin when I noticed that I had huge gains on my XRP and that the price of Litecoin had retracted back to around 230 dollars! This presented a decent buying opportunity for me to expand my Litecoin holdings! If it’s one thing for certain, it is smart to fork (or transfer) some of your Altcoin gains back into the chief 3 currencies used by the majority of exchanges. Bitcoin, Ethereum, Litecoin.
Remember folks, you only lose money when you sell!! If you see a retraction in some of the coins you are holding and it is not tied to any negative news coming from the company chances are people are taking profit and it presents a decent buying opportunity to improve your position or investment in that coin before it comes back up.
If you ask me, this retraction in XRP’s price will most likely lead to another rise in price as more investors see another decent buying opportunity before it rises again. XRP is here to stay and as more financial institutions move to implement the Ripple Network the company will only rise in value. I still see XRP hitting the 5 dollar mark by Q2 and in my opinion, has a strong chance of reaching 10 dollars before the year is over.