A crypto bull run isn’t just a one-way ticket to the moon – it comes with a fair share of sharp pullbacks. That’s exactly what we’ve seen lately, as the space undergoes one of its periodic meltdowns.
As usual, Bitcoin’s (BTC) tumble from its January high has been accompanied by even steeper losses in other tokens. Ripple (XRP), for instance – one of the biggest winners following Trump’s election victory – has retreated 32% from its January peak.
The question for investors is whether the current retreat signals the end of the bull run or represents just a breather, with coins poised to soon gain momentum once again.
For one investor, known by the pseudonym Practical Crypto Capital (PCC), the answer is clear – especially when it comes to XRP.
“Bull markets are wild and unpredictable with short-term booms and busts. The rational investor does not let the volatility scare them out of their positions.” PCC says. “Despite the major pullback in crypto during February and March, my thesis remains intact – XRP is still a buy. In fact, there’s been additional industry and Ripple-specific news to support this.”
One key factor PCC highlights is the growing institutional interest in XRP, evidenced by nine institutions filing applications for an XRP ETF. While the SEC has delayed decisions on multiple ETFs, Bloomberg ETF analyst James Seyffart noted that these postponements are routine and unlikely to impact their eventual approval. It is likely that the SEC is holding off on these approvals until Paul Atkins, the incoming SEC chairman, officially takes office.
“Once approved, these products will enable both retail and institutional investors easy access to allocate funds to XRP,” PCC notes.
Meanwhile, stablecoins “continue to be the killer apps” in the cryptosphere and Ripple has gotten in on the action. It introduced its own stablecoin, RLUSD, in December and its market cap has since surpassed $169 million.
There’s also the technical perspective with PCC claiming the long-term chart “reveals the truth.” Despite the recent pullback, XRP remains firmly in “breakout territory” after overcoming its lengthy four-year triangle pattern.
All the above is enough to convince PCC the bull market has a way to go yet.
“XRP is still well above where it’s been trading for most of the past 4 years, and there is good news in the form of ETFs and the stablecoin,” the investor summed up. “When the macroeconomic tariff fears are finally resolved, we’ll see a continuation of the bull market well into 2025.”
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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