XRP has dropped hard today and is now trading at around $0.40. Most investors are confused by this drop, given that it comes just a few days after XRapid went live. So what is really happening to XRP? Well, today’s drop in the value of XRP (XRP) is due to a multiplicity of factors, most of which have nothing to do with XRP itself.
The first one is that bitcoin (BTC) had already lost momentum at around $6500. It has been ranging at this price level for the last couple of weeks, and with the volumes consistently low, it was bound to break. Given that the rest of the market is still tied to bitcoin (BTC), its huge drop was bound to pull the rest of the market down too. As such, the moment it touched a low of $6200, XRP like the rest of the market was dragged down too. On this note, if bitcoin drops below $6000, XRP (XRP) could continue to drop too, and touch new lows, lower than its last lows of $0.25. This will continue to be the trend until XRP gains enough adoption to decouple from bitcoin (BTC).
The second factor that is possibly causing this drop is the fact that there hasn’t been any big announcements for XRP after ripple’s XRapid went live. XRapid going live was a hugely anticipated event, and has been hyped all through the year. Prove to these expectations was in the rapid rise in the price of XRP in late September, after news emerged that XRapid going live would be happening soon. However, once it happened, and there were no new announcements with regards to banks adopting it, it became sort of an ant-climax. It took away the momentum that XRP had been building up since September 21st.
That’s why the value of XRP started dropping almost immediately after XRapid went live. As such, even before bitcoin (BTC) crashed the entire market, XRP was already on a downtrend. Had some big banks gone live with XRapid, the situation would be quite different right now. That’s because XRP would most likely be trading independently of the price of bitcoin (BTC). Prove to this in in the price action of XRP after news of XRapid came out on the 21st of September. At that point, it was XRP that was practically pulling up the rest of the market, a role that has always belonged to BTC.
So, now that the market is down, what next for XRP? Well, at this point, the best thing is to think of the market from a long-term perspective. That’s because the long-term value of this crypto will be premised on its adoption, and that’s a long-term goal. In coming quarters, it is largely expected that a number of banks will go live with XRapid. Ripple already expects that at least one bank will be going live with XRP in 2018. Once this gains momentum, XRP (XRP) could close the year above $1. That’s a reasonable return for a crypto that is still under $0.50.