In a bear market year, it’s uncommon to see a single project make repeated headlines, in addition to interesting associated price action. Ripple with its XRP token has been the topic of much discussion the past several weeks.
Many individuals in the crypto space do not like XRP, due to its centralization, as centralization goes against the whole concept of blockchain (dispersing power). But many people also love XRP and see significant potential in its banking applications. So what’s going on with the world’s top love/hate project?
Earlier This Year
Everyone in the crypto space likely remembers when XRP hit a price of over $3, with CNBC teaching people how to buy at those top prices. After the entire market took a hit in January, leading to the 2018 bear market, XRP drifted into the shadows, as did almost all projects. Although XRP did make the news in May when CNBC taught investors how to sell on a day that saw XRP around $0.65 per coin.
Ripple Swell Conference Hype
Prices and news for Ripple and XRP started to pick up as the annual Swell conference dates grew closer. Ripple’s Swell conference took place October October 1-2 this year. Generally, the saying in trading or investing is to “buy the rumor, sell the news”. This phrase basically means that events rarely live up to rumors or excitement, and that is reflected in price action.
Leading up to Ripple’s Swell conference, CNBC wrote of rumors that Ripple would release its xRapid product, as well as subsequent mainstream bank involvement. Investors also likely anticipated Swell bringing further good news and positivity come conference time.
Ripple Swell Conference News
Filled with much anticipation, October 1-2 did not disappoint. On October 1 Ripple revealed that their product xRapid was being utilized by three companies (MercuryFX, Cuallix, and Catalyst Corporate Credit Union). Ripple’s xRapid uses the XRP token for easy borderless payments.
Bill Clinton also made comments that over-regulation could smother the space.
October 2 included the release of a report, stating that blockchain adoption is not too far off, as well as collaboration on regulatory issues.
The xRapid news, and adoption reports were highly significant. So why did the price drop 13% during the conference, and drop even further in the days following? Because that’s the way trading and investing goes. Shown in the chart above, even if the news is fantastic, people still sell anyway.
Credible crypto Youtuber Data Dash also states – “I think people were disappointed because, out of these three companies, there wasn’t any major commercial bank”(referencing the three companies announced to be using xRapid).
Not The First Swell Action
Very similar price action happened last year around the 2017 Ripple Swell conference in fact. Ripple Swell 2017 took place October 16-18. Price action speaks for itself in terms of “buy the rumor, sell the news”.
One can clearly see the anticipation of price increase represented by green vertical candles on the chart, followed by red price decline during and after the conference.
What’s Next For XRP?
Centralization is a common argument for those that dislike XRP. Still, there is a strong community of XRP investors and holders. And after this year’s conference and xRapid announcements, it’s hard to argue Ripple’s potential to change the banking payment sector, even if they are highly centralized. (Which partly goes against the point of blockchain and cryptocurrency).