Recently, Ripple or XRP faced strong rejection at a critical trend line resistance; however, that couldn’t stop most of the analysts and investors in XRP from calling for price targets of about $5 or even higher during the following several months.
Entering a new bullish cycle soon
Most of the traders at this particular point are of the view that the bear market is actually over, and we will quickly enter a new bullish cycle. Notably, most of them think that we are actually neither in the 2015 nor the 2014 part of the previous period; in fact, they believe that this time is quite different when history tells us otherwise.
Recently, we saw cryptos follow predictable market cycles during their existence. Temporary price action might be difficult to predict; however, the big picture remains untouched and straightforward for the more significant part if we accept several realities.
First of all, one important thing is to realize that as the market cap of XRP is growing, it is going to have some longer cycles than before it is going to take more time for money to enter and then leave the market. If people accept that, then there will not be a reason to think that the bear market came to an end, and XRP/USD is about to start a new bullish cycle.
XRP/USD Shorts is not affordable for market makers
People need to wait and see the bear trend through. Even if they are in the 2015 part of the cycle of before, they are still going to have to see the price decline importantly for it to be called a correction right before the following run-up.
This is only a minor retracement which is entirely unimportant in the grand scheme of events. Moreover, it has cooled down the price for the moment, but in some time from now, this price is going to be overbought once again all while it isn’t doing much but trading sideways.
XPR has still to see absolute severe sell pressure mount up. The weekly chart for the XRP/USDShorts actually shows that the bears are simply getting started. As XRP/USDShorts also piles up, people are going to see sell pressure on XRP rise.
However, the market makers can’t afford themselves to pay out all these shorts, and that’s why people are most likely going to see a similar crash like in November of last year. The price is also going to decline only when most retail traders expect it to rally to a new all-time high.
Smart money always accumulates first
One thing about the market cycles actually is that it is still the smart money which accumulates first. Otherwise, smart money always leads the way; it is never the dumb money that drives it.
Looking at this rally, we are going to see that institutions triggered it; however, smart money took it from there. Right now, it is the time for these institutional investors to dump on that dumb money, to cash out while the overly optimistic “investors” are still left holding the bags.
There is actually no doubt that Ripple is an excellent company with great potential; however, XRP and Ripple is definitely not the same thing. The feature prospects of XRP are still uncertain.
Many prominent traders called it a scam. It still remains a highly risky investment and is importantly overpriced, as well as over-hyped as the third largest coin by market capitalization.