Leading cryptocurrencies are in red. The greatest losses per day are borne by the Ripple cryptocurrency. If the dynamics of the fall persists, in a day XRP will again move to 4th place, giving way to Tether (USDT) in the third rate.
Bitcoin is still a market maker. As predicted by leading analysts, its drop could lead to a price of $13-14K. It is the level when experts recommend investors to buy BTC in the hope of further rise. However, no one is sure when the next bitcoin rally will happen.
A completely unexpected rise in XRP brought a big revival to the market. Now there is reason to fear a deep drop in XRP. Meanwhile, there are arguments in favor of its stabilization at the level of about $0.5. Popular trader on the Amsterdam Stock Exchange, Michael van de Poppe, explicitly warns against buying XRP and notes that after a 115% rally, a deep correction is inevitable. And many investors and even traders are subject to the fear of missing out (FOMO) and often buy an asset when it has already exhausted its rise potential. This is exactly what is happening with XRP now, according to Michael. He tweeted about this:
“I feel like I’ve got to tweet this, as I think a heavy amount of people have the feeling. Don’t FOMO in to things like ETH at this point or XRP. Definitely more upwards momentum coming in the following months, but be protective with the capital”.
Poppe believes that the rally in large-cap cryptocurrencies is over. But he’s optimistic about small- and mid-cap altcoins. The trader also believes in the further rise of bitcoin, but most likely in 2021. In addition, based on technical analysis, van de Poppe predicts a fast growth in altcoins in the first quarter of 2021. They will double and then adjust. And the new “altcoin season” will come only in the summer of 2021.
The Dutch trader may be underestimating fundamental factors such as the arrival of a new administration in the United States. Meanwhile, a number of analysts draw attention to the fact that Biden is about to dramatically change the cryptocurrency market. It is highly likely that Biden will take the path of expanding international sanctions. This will drive XRP growth as Ripple is the best solution for fast and cheap international payments today.