Cryptocurrency markets have had a bullish trend since the start of 2017. Most of the cryptocurrencies have had their prices sky rocket, with a wild imagination that their prices will look back anytime soon. However, it is normal behavior just as with stocks, commodities and other currencies, for their prices to correct themselves causing trend reversal. That’s exactly what happened on the cryptocurrency arena last week in most crypto forums, where most participants started expressing their fears of the massive sells off. For the experienced traders, this was nothing new to their trading experience; in fact, it was a golden opportunity for them to profit from the fearful investors.
Bitcoin, the most actively traded coin was the first currency to experience the crypto avalanche. From a high of $20,000, it came down to $14,000, a whopping 30% drop. This has seen all finance and investing media, social media and other news channel draw their attention to Bitcoin, and might probably last for a while. Other cryptos have followed suit; Dash, Bitcoin Cash, Bitcoin Gold, Ethereum, Iota, Litecoin, Cardano, and NEO have all experienced the value loss amounting to double-digit in terms of percentage.
Investment professionals claim that ‘’it is normal for the above-mentioned coins to display such a behavior considering the coins had a massive rise in price the previous months’’.
From the above image, Only Ripple out of the other nine cryptos appears to be bullish whereas others are bearish.
Ripple takes a different direction
Ripple has succeeded to take the 3rd position in terms of market capitalization. This is after managing to reach the $48 billion market capitalization. It is quite a remarkable achievement since in May 2017 XRP price was trading at $0.05 and as of writing this article, it is trading at $1.35, that a 2500% increase.
Asian banks are testing XRP platform for interbank transfers. This has caused a speculative move among the Asians making them buy ripple in bulk. The current banking systems is use are slow. The banks intend to deploy XRP blockchain solution to counter such challenges.
Against the odds
Other altcoins that have shown resilient behavior against the mass crypto sell-off are Komodo and Lisk. KMD gained over 300% in a week’s time reaching a price of $11. LSK has also beaten the odds by gaining 140% the same week reaching a trading price of $22. John McAfee sentiments seem to drive the price of Ethereum though it hasn’t survived the selloff.
Buying and selling opportunities arise because of the price movement, which is considered normal. Even though in the crypto world there is no snoozing.