xrp cryptocurrency price

If You Still Have Ripple for Some Reason, Sell It While You Can

If You Still Have Ripple for Some Reason, Sell It While You Can
Written by publisher team

is being ripple (CCC:XRP) ‘buy on dip’ position on pullback after moving to the parabola? Not so fast! The explosive price action of this fading altcoin has nothing to do with its fundamental fundamentals. Alternatively, you can turn the command to “pump and dump”.

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with the jamstop (New York Stock Exchange:GME) The “short squeeze saga” now in the history books, some retailers have turned to inflate cryptocurrencies online for fun and profit.

As a result, the price of Ripple rose from 25 cents to prices above 70 cents, before falling back to about 41 cents today.

This ride on a roller coaster was a windfall for those who owned it early on. But, for those who dive now? Don’t rely on it. Just as with the short rally in heavily shorted stocks, this trend will fade quickly. Once that happens, it is more than likely that XRP will not continue to slide below the 25 cent price that led to this crash.

Between its ongoing problems with the Securities and Exchange Commission (SEC), and the possibility of another “crypto meltdown,” the downside risks are enormous from here.

Already suspended on the popular cryptocurrency exchange Queen PieceThis once-rising altcoin is fast becoming irrelevant. If you keep it up, take advantage of the last madness and cash in on the money now. Otherwise, read the room, and stay away from this cryptocurrency.

Why can’t Ripple find its way out of trouble?

The surge in XRP could help some owners take profits or cut losses, but other than that, the recent headline-making moves don’t help solve the underlying issues with this controversial cryptocurrency.

As I discussed last month, Ripple Labs is under investigation by the SEC. “Under investigation” is not the same as a conviction, but it is questionable whether XRP can get out of the crosshairs of this watchdog agency unscathed.

In simple words, like cryptocurrency Bitcoin (CCC:BTC-USD) Avoid classifying them as unregistered securities offerings as they are decentralized. Unfortunately, this is not the case with XRP. The display is controlled by Ripple Labs.

This means that the SEC’s allegations may remain consistent. Only time will tell if this ends with a fine or acquittal, but the damage is already done.

Coinbase has suspended trading in XRP, and with bitcoin and other altcoins like Ethereum (CCC:ETHSeeing more demand among retail and institutional investors alike, it looks like Ripple’s game is over.

Adhering to cryptocurrency “smart money” is chasing them

The influx of institutional funds into cryptocurrencies is one of the most compelling reasons to invest in this asset class. It is an integral part of the bull case for bitcoin. While I would be cautious about diving into Ethereum as it is trading near all-time highs, the increased “interest in smart money” in this leading cryptocurrency could make it a great opportunity to buy and hold in the future.

Unfortunately, Ripple does not have the same factors that lead to it. Given the SEC investigation and subsequent Coinbase delisting, don’t count on institutional interest or even retail interest to swoop in for safekeeping. Without a catalyst like those who take it to a higher level, there’s no reason to venture into today’s prices.

So, with no reason to go up, should someone who owns it cash out ASAP? Yes. Certainly, this crypto could see another massive rise, if online speculators pump it in again. Unfortunately, not only can you anticipate when the next “pumping and dump” will happen, but the looming “cryptocurrency crash” could accelerate its price decline.

XRP Rally Fades Fast

Over the past few months, we’ve seen a resurgence of retail speculation in cryptocurrencies. To some extent, this obscures the “increasing smart money allocation” thesis that I highlighted above. In other words, it is difficult to know if prices are rising because institutional money is flowing in them more frequently or if retail investors are buying in anticipation of large institutional inflows.

If it is the latter, there may be a little speculation besides driving up prices at the moment, leaving them vulnerable to a crash. While XRP hasn’t risen much compared to its more popular peers, panic selling across the board could send it significantly lower prices. Especially when you take into account the liquidity squeeze, due to its suspension on Coinbase.

Bottom line: With no catalysts to send it higher, but a lot going for it to drop, stay away from Ripple at all costs.

As of publication, Thomas Niel has held a long standing position in Bitcoin.

Thomas Neal, a contributor to InvestorPlace, has written one stock analysis since 2016.

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