Last Coin Standing: 5 Reasons XRP Endured for Longer

[Leonardo]

In latest the crypto market bloodbath, which battered both Bitcoin and altcoins, the only asset left unscathed was XRP. Miraculously, it has even risen a bit higher in the past day, up 0.19% to $0.48. Stellar (XLM), which behaves as the open-source sidekick to XRP, is also relatively unchanged, losing only a cent to $0.21.

Later, XRP also saw a larger slide, shedding 11% within an hour of trading, going down to $0.42. The days ahead will show if XRP manages to hold on better.

Here are the most probable reasons XRP survived for a bit longer while the rest of the market capitulated.

Separate communities: It is somewhat misleading to state there is one unified crypto community. There are many projects with their own fan base and traders. But the Ripple community and XRP owners are in a separate group, not connected to projects based on mining, tokens, or the running of a distributed blockchain.

The Ripple community has been the punchline of many jokes from other coin owners and Bitcoin maximalists, but in the current sell-off, XRP owners are, at least for now, having the last laugh. It seems like they are not quite ready to sell, possibly expecting the blockchain solutions to prove themselves non-viable and lift XRP to the top of digital assets and decentralized solutions. XRP owners are now even more incentivized to “hodl” their coins since they feel safer.

Price propped up: As part of the “hodl” culture, the Ripple foundation has effectively locked in most of the supply, offering no incentive to sell. The current behavior of the asset is the perfect incentive not to release new XRP on the market. While some investors bought at a very high price, others received it as an airdrop and can afford to hold on.

The Binance effect: A large part of XRP trading happens on Binance and ZB.com. This concentration allows for bot activity to amplify all trading effects. In the case of XRP, a recent rally increased prices, helping the asset preserve some of the gains. XRP is still up more than 480% since November last year, while other leading coins are underwater.

Delayed reaction: The price of XRP is not in any way guaranteed. It is possible that, for now, XRP is only experiencing a delayed reaction. XRP is pressured by regular traders, and while the community and fans may not sell, speculative trades are always a possibility. XRP has still not moved up; it simply held stable for longer. However, a crash cannot be ruled out.

Safe haven buying: With other coins dropping in price, XRP offers an alternative investment. Volumes rising to the equivalent of $1.3 billion indicate that buying is indeed happening, but it remains to be seen whether the scale is large enough to stave off a capitulation event. In any case, while XRP tries to position itself as different from blockchain projects, it is highly dependent on the crypto-related ecosystem of exchanges, wallets, traders and services, still with no separate path for investment.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.

Source: https://cryptovest.com/news/last-coin-standing-5-reasons-xrp-endured-for-longer/