In the rapidly changing landscape of cryptocurrency assets, many digital currencies are thought to exhibit characteristics of speculative bubbles, reflecting doubts about their value stability. Nevertheless, a market analyst asserts that XRP’s value is strong and unaffected by the speculative bubble pressures that commonly impact other cryptocurrencies.
Is XRP More Stable Than The Leading Cryptocurrencies?
As XRP maintains its significant role in the cryptocurrency sector, crypto enthusiast SMQKE recently provided insightful commentary on the fundamental attributes that lend stability to the altcoin’s value.
The analyst contends that the token’s value remains resilient because it is not influenced by the speculative bubbles affecting other digital assets such as Bitcoin (BTC) and Ethereum (ETH), supporting his argument with a document.
The document stated:
Consequently, it was found that macroeconomic and financial shifts had little impact on XRP’s value, and fluctuations in Bitcoin prices did not affect XRP. Fry (2018) employed a rational bubble model for cryptocurrencies, identifying bubbles in Bitcoin and Ethereum, while no bubble was identified in XRP.
A speculative bubble occurs when market prices are mainly driven by investor excitement, optimism, and anticipated price increases, rather than the asset’s fundamental value.
SMQKE emphasized that since 2017, Ethereum and Bitcoin have been caught in a speculative bubble fueled by massive price manipulation and misleading centralized approaches. In contrast, XRP is free from speculative value bubbles, thanks to its technological security.
This analysis from SMQKE suggests that the hype-driven strategies prevalent in a large part of the cryptocurrency market cannot sway XRP’s price, since its value stems from real-world utility, particularly in cross-border transactions and institutional finance. “The increase in XRP’s price will be propelled by organic growth and network utilization,” he added.
SMQKE also referenced a prior post where he pointed out that Bitcoin and Ethereum are not as “decentralized” as is often believed in the industry, further underpinning the altcoin’s strength.
A Possible Repeat of the 2017 Bull Run for the Altcoin
After a brief rally in the market, XRP is receiving numerous optimistic forecasts regarding its near-term potential from various crypto analysts. Crypto expert, Pharaoh, has predicted a potential 2017-like bullish breakout for the altcoin later this year.
Pharaoh pointed out that eight months after the Bitcoin Halving event in July 2016, the token began its rise in 2017, culminating in a remarkable bull run that brought it to its all-time high. Following the 2024 Halving, the expert believes it is set to begin a similar trend, potentially starting in December.
However, Pharaoh expects the altcoin to experience a substantial rally once the ongoing lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) is effectively resolved. “A strong finish to 2024 seems likely with considerable fundamental and technical momentum heading into 2025,” he noted.
Featured image from Adobe Stock, chart from Tradingview.com
