Ripple, or XRP, Is one of the most popular cryptocurrencies after Bitcoin. Cryptocurrency has been growing in popularity over the years, with massive gains in market capitalization around 2017 and 2018. While cryptocurrency has suffered some challenges in lawsuits filed by the Securities Exchange Commission, it continues to grow.
As a trader or a cryptocurrency enthusiast, you must be appraised with the most current information and market forecast data to make proper decisions. Here are five easy ways for you to get market information on XRP.
- Technical Analysis
Have you ever seen photos of traders sitting in front of large screens staring at charts and graphs? That is one of the most popular ways of forecasting information on the market. Technical analysis involves the evaluation of charts to identify possible trends. To actively engage in xrp price prediction and market forecasting, you must consider undertaking technical analysis using some of the best indicators.
These indicators provide information regarding volume, uptrends and downtrends, and price movement. Using the information on the charts, you can be best guided on the next price movement for XRP will be.
Identifying the right tools for technical analysis requires a lot of trial and error since they are not always fool proof. To best navigate such instances, you can use a demo account to evaluate the market and see the possibility of some events happening. Using your demo account, you can try out different indicators and backdate them to see how they have been performing over time.
2. Following the News
Many networks provide financial news analyzing the present trends in the market and events that may push prices up or down. Following these news segments can provide you with vital information regarding the price of XRP in the future.
Networks such as Bloomberg and CNN Regularly host financial experts and experts on the cryptocurrency market for them to provide information regarding price movements.
As such, you should regularly watch these news items to get information on market forecasting. You will also need to subscribe to any newsletters and follow their social media accounts to get the news as they happen. However, you should also analyze the items discussed in the news because some panelists and news presenters may be biased toward a specific direction.
3. Cryptocurrency Chat Forums
Communicating with fellow traders and investors on different chat forums can also provide information on the market forecast. Chat forums are an excellent place to gauge the market sentiment and the opinions of different traders regarding the price of XRP. Since, many times, price is determined by the market and the trades they make, the sentiment of the market towards a specific direction could propel the price of the cryptocurrency to move up or down.
However, remember also to undertake your research on the aspects addressed by other traders. Not all traders in the market are experienced in analyzing and forecasting price movement. As such, take all their information with a pinch of salt.
4. Comparing And Contrasting With Other Cryptocurrencies
Generally, cryptocurrencies tend to trend in the same way. The increase in the price of certain cryptocurrencies, such as Bitcoin and Ethereum, indicates that the market is confident with the viability of cryptocurrency in general.
Therefore, if you want to forecast how the market will react concerning XRP, considering the movements of other cryptocurrencies could be a guiding point. As such, consider the market in a wholesome way as opposed to simply evaluating XRP alone. Doing so will provide you with a lot of integral information on the possible future of cryptocurrency.
5. Cryptocurrency Exchanges
Since cryptocurrency exchanges have information regarding how the market operates, they are a good place to evaluate the price of XRP and predict its price for the future. One of the ways to use cryptocurrency exchanges for market forecasting information is to look at the news elements they provide.
You can also evaluate the previous trades of XRP in that specific exchange to gauge whether the price will increase based on the market sentiment. If many purchasers are constantly buying XRP in large volumes, it can indicate that the market is confident XRP will increase in price. However, if many sellers are shorting the currency at large volumes, it could indicate that the price is likely to go down.
Cryptocurrency exchanges are not a foolproof way to evaluate the market forecast, especially on price, but they are a good way to gauge the general market sentiment and grasp what could be going on. Therefore, you should combine your review of cryptocurrency exchanges with the other four mechanisms.
Conclusion
Trading in cryptocurrencies, as is the case with many other financial markets, requires speculation as to the future growth of the currency. While it is impossible to accurately predict any currency’s future because of many externalities affecting the cryptocurrency market, you can get a good grasp on possible future trends by using the five strategies above.
One very important aspect to remember is to do your research. Relying on information from outside sources can be very easy and comfortable, but it is also risky since everyone has biases toward different directions.