Concerns with the price of Ripple
I said I would share my trades with you and why I'm making them. I tend to do my numbers and trades in the morning, as calculated rather than emotional decisions. That said I keep an eye on the market during the day and will react when I think I should.
Ripple has been on a march for a few months and has accelerated in the last few days. This afternoon it overtook Ethereum to take 2nd place for market cap. I have had my concerns about Ripple for a while:
- The available supply of coins
- The volume of coins owned by the team
- Whether banks actually need the coin to use the Ripple system
- Whether banks will actually use Ripple
I do not believe that it's current market cap position is deserved and now think it is overpriced. Obviously I could be wrong.
There is also a lot of negative sentiment from crypto purists. While I don't tend to listen to individual opinion I will keep an eye if there is a consensus forming.
At the same time Ethereum is 10% down today, in part a response to an attack on the Kraken exchange which saw a flash price drop last night.
I see this as an opportunity. I think Ethereum is a more stable coin with a better ecosystem of development, Ripple is quite closed. As such I liquidated 80% of my Ripple and flipped to Ethereum this afternoon.
I am now leveraged quite high with Ethereum compared to market cap, something I am comfortable with for now as I think it will make another push over $100 and stabilise above this time.
Any questions then please give me a shout.