In the ever-evolving world of cryptocurrency assets, it is believed that most digital assets possess speculative bubble characteristics, demonstrating uncertainty about the stability of their value. However, a market expert has claimed that XRP’s value remains robust and free from the speculative bubble pressures often seen with other cryptocurrencies.
Is XRP More Stable Than The Top Cryptocurrencies?
As XRP continues to demonstrate its significant presence in the cryptocurrency industry, crypto enthusiast SMQKE in a recent commentary has shed light on the fundamental qualities that provide durability to the altcoin’s value.
The expert argues that the token’s value is robust since it is not subject to the speculative bubbles that other digital assets like Bitcoin (BTC) and Ethereum (ETH) are susceptible to while sharing a document to back up his claims.
The document read:
As a result, it was found that the macroeconomic and financial developments did not form a significant difference upon the value of XRP and the changes experienced in Bitcoin prices did not influence XRP. Fry (2018) practiced a rational bubble model for cryptocurrencies and detected bubbles in Bitcoin and Ethereum, while no bubble was detected in XRP.
When prices in financial markets are predominantly driven by investor euphoria, optimism, and the expectation of future price increases rather than the underlying fundamental worth of the asset, this is referred to as a speculative bubble.
SMQKE noted that since 2017, Ethereum and Bitcoin have been in a speculative bubble triggered by massive price manipulation and deceptive centralized strategies. Meanwhile, XRP, on the other hand, lacks a speculative value bubble due to its technological security.
This prognosis from SMQKE simply means that the hype strategies driving a large portion of the cryptocurrency market cannot be used to influence the price of XRP, because its value is rooted in its utility in real-world uses, especially in cross-border transactions and institutional finance. “The rise in XRP’s price will be driven by organic growth and network usage,” he added.
SMQKE then drew attention to his previous post where he highlighted that Bitcoin and Ethereum are not as “decentralized” as many within the industry usually believe, further solidifying the durability of the altcoin.
A 2017-Style Bull Run Incoming For The Altcoin
Following a brief market recovery, XRP is seeing multiple positive predictions about its potential in the short term from several crypto analysts. A crypto expert, Pharaoh has predicted a possible 2017-style bullish breakout for the altcoin within the year.
According to Pharaoh, 8 months after the Bitcoin Halving event in July 2016, the token began to rise in 2017 and went on to experience a massive bull run leading to its current all-time high. Now, following the 2024 Halving, the expert asserted that it is positioned to initiate the trend once more, possibly kicking off by December.
However, Pharaoh anticipates the altcoin to rally massively once the ongoing lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) is essentially concluded and closed. “A strong end to 2024 is likely with tons of fundamental and technical momentum headed into 2025,” Pharoah added.
Featured image from Adobe Stock, chart from Tradingview.com
Source: https://bitcoinist.com/xrps-is-free-from-speculative-bubble-pressures/