The chart of Ripple’s crypto (XRP) is flat in recent months, very flat. Followers reach out asking about our Ripple forecast of 20 USD and our prediction that Ripple’s XRP will become the largest cryptocurrency. Also, is Ripple still the number one blockchain investment right now? All our predictions are in contrast with the flat price chart. Our answer is simple: as per our 50 cryptocurrency investing tips the principle ‘the higher the base the higher in space‘ applies also to crypto investing, especially to Ripple’s XRP.
Cryptocurrency Market Moving Into A Consolidation Mode
Let’s start with the big picture of cryptocurrencies and the state of their market. They did most likely start a consolidation recently as per our findings in Cryptocurrency Alert: The Crypto Winter Has Ended. If that’s a an accurate assessment of the crypto market which we will know for sure in a couple of weeks then it means we entered a consolidation period.
This is what we wrote in our investing guide for cryptocurrency investors:
Tip # 41: Consolidations are very frustrating for traders and investors. This is the type of situation in which the vast majority of investors show no patience. They then sell with a loss, only to find themselves chasing prices higher after a certain time period.
Tip # 42: Consolidations create a very bullish long term outlook for any asset or market. Essentially, during sideways trading, sellers tend to leave the market every time the price peaks. If a consolidation goes on long enough all sellers leave this market. That’s the ideal market condition for a new bullish trend.
Tip # 43: The psychology behind this has to do with the fact that participants are just worn out of that market, and recognize the opportunity cost they’ve had to endure while waiting for a resolution. By the time the market breaks out it’s just been too painful to remain in the trade. That’s when Mr. Market resolves in an explosive upward move.
Ripple XRP Very Resilient But Investors May Have Less Patience
When it comes to Ripple’s XRP specifically we see one thing: the consolidation already started many months ago.
The price chart embedded below makes the point.
As per our cryptocurrency investing guide:
Tip # 44: The saying goes “the bigger the base, the higher in space” which means that the longer a sideways consolidation period the more bullish power because there are less sellers in that market. That’s what’s happening in the crypto market right now.
One thing crypto investors have to know is that XRP is the most challenging crypto to hold. It is the most resilient crypto when it comes to consolidations. Why is this challenging? Because crypto investors are not resilient.
This is the conflict between price and psychology: a resilient price chart is theoretically easy to invest in (provided the fundamentals suggest price appreciation over time) but investors are too impatient to look at their account not changing for a long period of time.
Our advice to crypto investors is to get past this mental and emotional state.
It all depends how you look and what you listen to: do you listen to your emotions or do you look at the controlled state of Ripple’s XRP chart?
We have written extensively about Ripple and XRP in the restricted research area. We even published a 6000 word (!) question and answer section in the restricted area answering all concerns from our crypto investing members. Get access now, as this week’s crypto alerts may be THE most important ones of 2018 / 2019 / 2020. Get access now >>