Just yesterday, we were talking about Ripple (XRP) in a bit of a negative light. After all, the value of the cryptocurrency was one of the most damaged in the recent decline across the crypto board. However, today, as most cryptocurrencies find their way toward a strong recovery, XRP seems to be leading the pack. Today, we’ll talk about what we’re seeing from Ripple, why it is showing such an aggressive recovery, and what we’ll be watching for ahead.
What We’re Seeing From XRP
As mentioned above, Ripple seems to be the cryptocurrency that is leading the charge in the recovery from the recent market-wide declines. Currently (1:15), according to CoinMarketCap, XRP is trading at $1.61 after a gain of 58.82% thus far today.
Why Is Ripple Leading The Charge In The Recovery
If we look across the board at cryptocurrencies as a whole, we’re seeing gains. However, very few cryptocurrencies are seeing quite as massive of a rise as XRP is at the moment. So, what’s the deal? Why is it that Ripple is climbing so high in value?
While any answer to this question would be purely speculation, here’s why I believe that it is outpacing others:
It starts with trading volume. When you look at XRP in comparison to the bigger cryptos out there like Bitcoin and Ethereum, you’ll see that the average trading volume on Ripple is relatively low. As a result, the value of the cryptocurrency will experience higher waves of volatility as it is more susceptible to knee jerk swings in sentiment. At the end of the day, because of the low average volume on XRP, it takes far less to cause a movement that is this big in this crypto when compared to others in the mainstream.
Another factor playing out here is a natural market reaction. Take a look at the astronomic decline that we’ve seen in the price of Ripple as of late. We’re not talking about two or three percent here, we’re talking about very big numbers. At the end of the day, when we see dramatic declines, it’s natural that when the value of the asset reaches the floor, it comes back with some seriously aggressive momentum. In fact, Arthur Hayes, co-founder and CEO of BitMEX, said it best when he said:
“[Ripple was] one of the most damaged altcoins during the latest rout… It is only natural that it rebounds aggressively.”
What’s Next For Ripple?
The truth is that a large part of the excitement in the cryptocurrency space has to do with the fact that no one really knows what’s next for any of these altcoins. However, the ride is definitely a fun one to follow. That being said, there are some good and bad bits of news to look for.
First and foremost, the recent slaughtering of cryptocurrency values was ultimately the result of fear surrounding regulation. In particular, regulation in China and North Korea proved to be serious causes of concern for XRP as these populations are overwhelmingly important to the cryptocurrency. While these stories haven’t evolved yet since we last discussed them, news is bound to come out, and when it does it could cause some serious movement.
On the positive end of the story, we have the fact that XRP is like no other cryptocurrency. In fact, Ripple is created in a very centralized way, opening the door to an easier regulatory process for leaders around the world. This is why large banks are getting involved in this seemingly small cryptocurrency. As a result, even if regulation becomes an issue for others, XRP may be one of the surviving cryptocurrencies in the end.
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