XRapid launch was widely anticipated. Right from last month when it was declared by one of the employees that Ripple might launch xRapid in the month of October, Ripple (XRP) had been on a relentless rally. However, Ripple (XRP) launched xRapid at Swell yesterday. In spite of that, Ripple (XRP) is down by 6% today. This fall is actually surprising many investors as well as traders. It was widely anticipated that Ripple (XRP) will rise even more after the launch of xRapid.
Why did ripple fall after the launch of xRapid?
• Buy the rumor sell the news:
For a long period of time now, most of the cryptocurrencies rallies have been following buy the rumor sell the news. That is why, when the news actually comes out, the traders actually sell the cryptocurrency and book the profits. A similar thing seems to be happening with the ripple (XRP).
• Huge rally in anticipation:
The reason why it might have fallen is that of a huge rally in anticipation. On the anticipation of the xRapid launch, Ripple (XRP) had rallied from $ .25 all the way up to $ .75. In less than one month. That is why some profit booking was pretty obvious. However, as often happens with ripple (XRP), the moves in either direction are pretty drastic as well. That is why it has now fallen 33% from the peak of $ .75. It is currently trading around $ .52.
While the xCurrent protocol by Ripple as well as RippleNet are being used by many companies, xRapid, in particular, is being used by just 3 companies. That is why the markets might be waiting for the response of these 3 companies or for more companies to join in as well. Only when they are able to join in, the use of the XRP token by these companies will increase in order to use the xRapid. This will also mean that the demand for the XRP token will increase as well. That is why it might be just a case of wait and watch before the investors and traders decide whether the XRP token will benefit from the launch of xRapid as expected.
Thus, these are some of the reasons why ripple (XRP) might have fallen in spite of the launch of xRapid which was widely anticipated.