Ripple’s XRP Outruns Bitcoin to Spike 6% Amid ‘Swell Event’ Hype
XRP was performing better Bitcoin and the rest of the top rivals on Monday as investors/speculators anticipated bullish outcomes from an upcoming Ripple event.
The third-largest cryptocurrency by market capitalization established an intraday high of $0.2936 as of 0616 GMT. The move uphill brought its daily gains up by 5.73 percent, as calculated from the opening price. At the same time, XRP stole a large chunk of capital from the Bitcoin market, rising by as much as 5.13 percent against the benchmark cryptocurrency. The XRP-to-BTC exchange rate earlier established a sessional peak of 3,523 sats. At its lowest in Q3, the pair was trading at 2,967 sats.
XRP Swells Because of Swell
The upside swing in Ripple’s XRP closely followed its investment into a mobile wallet provider. The San Francisco-based blockchain company announced that it’s wing Xpring is injecting $750,000 into BRD. The move, according to Ripple, would prompt BRD to add support for XRP tokens, which, in turn, would boost the altcoin’s adoption.
While Ripple-BRD partnership offered a perfect excuse for XRP bulls to open new Long positions, prominent market analyst GalaxyBTC – a pseudonym – thinks the jump has more to do with Swell. It noted that XRP price jumps every time before the Ripple’s well-covered conference takes place. For instance, the altcoin spiked 115 percent in 2017 and 220 percent in 2019 – two weeks before the Swell event.
XRP is rising again right ahead of the Ripple conference, scheduled to be held on November 8 and 9 in Singapore. The altcoin has already surged by up to 14.29 percent in October. In comparison, bitcoin’s gains this month stand at a mere 0.5 percent.
No Long Term Gains
Swell should not make a HODLER out of traders.
GalaxyBTC noted an opportunistic trade behavior around the Ripple event. While XRP surged impressively ahead of it, the altcoin also fell dramatically after it. The moves showed that the Swell conference – in the past two years – turned into a money-making opportunity for speculators.
The downside corrections were minimal compared to the gains that camme before them. But considering bitcoin’s sustained dominance in the cryptocurrency market this year, coupled with its integration into the Wall Street firms (read Bakkt), traders could start shifting their capital back into the benchmark asset on the first signs of its revival.
Further engulfing XRP is a class-action lawsuit against Ripple. The outcome of it could define whether or not the altcoin is security. If the court rules that XRP is a security token, then it could severely hamper its growth in the long-term, for its entire issuance would be deemed illegal, per the 1946 Howey’s Test.
Disclaimer: The author holds small amounts of XRP, Bitcoin, Ethereum, and Binance Coin. The opinion expressed in the article above should not be taken as trading advice. Readers’ discretion is recommended.
This article was edited by Samburaj Das.
Last modified (UTC): October 14, 2019 09:01