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During the last few weeks, the price of the Ripple token (XRP) has experienced a powerful rise that places it at 6-year highs. Even some enthusiasts of the so-called XRP Army are confident that it will not take long for the token to establish new all-time highs.
However, not everyone has the same level of optimism as these investors. Some experts warn that this monumental rise could have created a bubble that is about to burst. Within the financial world, no asset can maintain an accelerated rate of growth permanently.
The latter is due to psychological factors and the quantitative limitation of investment capital for particular assets. In that sense, artificial price ceilings tend to be reached that tend to generate sudden stampedes. Thus, much faster than the rise itself, liquidations cause collapses.
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These warnings are mainly aimed at late investors, who buy assets at the crest of the wave. In the case of the Ripple token (XRP), the magnitude of the rise leaves the door open for a possible collection of important proportions. However, this does not mean that the currency will not reach its all-time highs of $3.84 from 2018.
Over the last month, XRP performance exceeds +433%. Source: CoinMarketCap
Ripple Token Experiences Explosive 100% Rally in 7 Days
Unlike other digital currencies, XRP did not experience ATHs during the 2021 bull run. The latter was a consequence of the SEC’s hostile policies against the sector. In fact, Ripple was one of the first victims of US regulators’ war on innovation. In 2020, the company was sued for illegally trading securities.
The latter led to its price falling exponentially and not recovering until now. Gensler’s official resignation from the SEC in January is one of the big news for the company and its token. However, it is suspected that a news sales situation could occur on January 20. The latter, considering the strong rally that would have already allowed the whales to achieve enormous fortunes.
The bullish trend of Ripple’s XRP token allowed the coin’s price to rise from $0.5 to the current $2.67, with a peak of $2.83. It is a monumental comeback that accumulates 100% in the last 7 days until this Tuesday.
Until now, a big dilemma is presented to investors, considering the historical moment of Ripple, it can be said that the strength of the rally is not yet extinguished. Consequently, capitals can still capitalize on the token’s bullish trend. On the other hand, the fact that a possible currency bubble would not give warning before bursting stands out.
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