It was a matter of time until the next crypto coin would be pumped by the Reddit traders. XRP went up 50% in a matter of hours. Even though a chartist could make the case that XRP looks good around current levels, which is true, there is a similar case to be made that the dump is about to start from current levels. If anything, from our 6 crypto predictions for 2021, the only one that we started doubting a 2021 kicked off was our XRP forecast. We still doubt that XRP has the right drivers to meet our former bullish XRP prediction. It may happen, we simply have doubts.
Yes, we were among those few XRP bulls out there, and even made the point that XRP had the most powerful chart setup in history of markets. But this disruptive change triggered by the SEC allegations in December of 2020 created serious damage, and XRP went from most powerful ever to most concerning in a matter of weeks.
Incredible, really incredible.
Consequently, one day after X-mas, we decided to de-list XRP from our crypo investing list. We re-qualified XRP as a momentum play, which is a totally different type of coin for a serious crypto investor portfolio.
This is what we wrote in our premium crypto investing research note to members:
XRP is now one of our ‘speculative coins’. It does not deserve a spot in a long term investment portfolio until the dust settles around the SEC allegations. The new reality of XRP since a few days MUST be reflected in how we qualify XRP: it is not a long term investment with acceptable risk levels any longer, its risk has risen too much to qualify as an investment.
XRP moves to the speculative list which is a list of coins that are worth a position only occasionally, also for a short period of time.
This is the one of the toughest decisions we had to take in 2020, and there were many tough decisions we made in such an unusual and challenging year. But we believe it’s the right decision.
Protection is by far the most important thing when it comes to XRP.
Now, one month later, we see this pump in XRP, driven by the Reddit trading community.
Certainly profitable for those traders, but it will leave innocent investors confused. More importantly, it might seduce crypto investors into entering XRP (again), as they might mix up this price pump with a price rally driven by fundamentals.
We believe that today’s XRP price action is *exactly* what we said before: short term momentum. Nothing more, nothing less. And it’s *exactly* why we re-qualified XRP from a top coin for a long term crypto portfolio to a momentum play.
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