In the dynamic world of cryptocurrency assets, most digital currencies are often believed to exhibit speculative bubble characteristics, leading to uncertainties about their value stability. However, a market expert has asserted that XRP’s value remains resilient and is not influenced by the speculative bubble pressures that frequently impact other cryptocurrencies.
Is XRP More Stable Than Top Cryptocurrencies?
As XRP continues to solidify its significant presence in the cryptocurrency industry, crypto enthusiast SMQKE has recently highlighted the fundamental aspects that contribute to the altcoin’s value stability. According to SMQKE, XRP’s value is robust and not subject to the speculative bubbles that affect digital assets like Bitcoin (BTC) and Ethereum (ETH). His claims are backed by a comprehensive document.
The document states:
Macroeconomic and financial developments did not significantly impact XRP’s value, and changes in Bitcoin prices did not influence XRP. Fry (2018) applied a rational bubble model for cryptocurrencies and identified bubbles in Bitcoin and Ethereum, while no bubble was detected in XRP.
Speculative bubbles occur when prices in financial markets are primarily driven by investor euphoria, optimism, and the expectation of future price increases rather than the fundamental value of the asset. SMQKE noted that since 2017, Ethereum and Bitcoin have been in a speculative bubble due to massive price manipulation and deceptive centralized strategies. Conversely, XRP lacks a speculative value bubble because of its technological security and utility in real-world applications, particularly in cross-border transactions and institutional finance.
SMQKE’s analysis suggests that the hype strategies prevalent in the cryptocurrency market cannot manipulate XRP’s price, as its value is deeply rooted in its practical uses. “The rise in XRP’s price will be driven by organic growth and network usage,” he emphasized.
Additionally, SMQKE pointed out in a previous post that Bitcoin and Ethereum are not as decentralized as widely believed, further strengthening the durability of XRP.
Anticipating a 2017-Style Bull Run for XRP
As the market shows signs of recovery, XRP is receiving numerous optimistic predictions about its short-term potential from various crypto analysts. One such expert, Pharaoh, has forecasted a possible 2017-style bullish breakout for XRP within the year.
Pharaoh explained that eight months after the Bitcoin Halving event in July 2016, the token experienced a significant rise in 2017, leading to its all-time high. Following the 2024 Halving, Pharaoh believes XRP is poised to initiate a similar trend, possibly beginning by December.
However, Pharaoh also noted that a massive rally for XRP is likely once the ongoing lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) is resolved. “A strong end to 2024 is likely with significant fundamental and technical momentum heading into 2025,” Pharaoh added.
Stay tuned as XRP, trading at $0.53, continues to navigate the ever-evolving cryptocurrency landscape.
