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‘Making sense’ of XRP’s rise from $0.40 to $1.60 & Dogecoin’s rally

2min Read
'XRP's rise from $0.40 to $1.60 doesn’t make a lot of sense to me'

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These two altcoins seem to be impervious right now. For a mere meme coin to rank as a top altcoin, (ranking 8th in terms of market capitalization) DOGE’s price rally has been no simple feat. Another altcoin, more or less on everyone’s mind, is XRP – an altcoin that many in the eco-system had written off, owing to the troubles Ripple has been facing with the SEC.

In fact, when the news broke out, the coin lost 50% of its value in just 48 hours. However, in four months, XRP’s rise from $0.40 to $1.60 has many flummoxed.

In an interview with Bloomberg, CEO of Galaxy Investment Partners, Mike Novogratz commented on the two popular altcoins. Novogratz stated that people should take into consideration the volatility when investing in cryptocurrencies. He reiterated that “we expect volatility”.

Drawing similarities between DOGE and the recent Gamestop (GME) stock price rise, Novogratz stated:

“It is a meme coin..it doesn’t really have a purpose.”

Furthermore, Novogratz stated that he “would be very worried if one of his friends were investing in Dogecoin at these prices.”

DOGE’s market capitalization of $38 Billion continues to set it apart from most altcoins. Top DOGE markets on Binance, Huobi Global, and Kraken contribute to DOGE’s trade volume. The criticism that DOGE has attracted is inevitable when altcoins like LINK, DOT, LTC, and ETH and their technical upgrades offer a rationale for their price rally.

Compared to that, DOGE’s price rally has no rationale supported by technical upgrades or fundamental analysis. 13% of DOGE HODLers have held the altcoin for less than a month and despite HODLing for a limited time, nearly all are profitable.

Novogratz also commented on XRP’s recent price surge. Terming the recent price rise from $0.40 to $1.60 in a month as ‘a retail frenzy’, he stated “it doesn’t make a lot of sense to me” as he described the sell-off of major cryptocurrencies such as ETH and BTC into altcoins.

Just a few hours ago, Novogratz took to Twitter to comment on the alt rally. He attributed the rise of certain alts to Coinbase’s news of direct listing. He stated:

 

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Jibin Mathew George is Editor-in-Chief at AMBCrypto. A domain expert in International Relations (European Politics), he has always been a believer in the unlimited possibilities afforded by blockchain and by extension, cryptocurrencies. As someone who has been watching and writing about this space for over 5 years now, Jibin has closely tracked the emergence of cryptos and digital assets as a separate asset class in portfolios world over. A lawyer by training, he previously contributed to the News and Research desk of Diplomacy & Beyond Plus. Before his stint at D&B, he was Editor at ED Times. Jibin also takes a great interest in politics, especially the corresponding effect political decisions and fiscal policy have on the world of finance, with a special focus on cryptocurrencies.
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