Key Takeaways:
In a pattern reminiscent of 'buy the rumor, sell the news,' XRP experienced a drop following the Ripple Swell 2023 event.
Contrary to speculation, Ripple did not announce an initial public offering (IPO) during the event.
Similar trends were observed in previous Ripple Swell events, where pre-event excitement led to post-event price consolidations.
Details:
The much-anticipated Ripple Swell event in Dubai, held on Nov 7-9, witnessed XRP surging to $0.73 on Nov 6 in anticipation. However, as the event unfolded, the coin's value retraced to $0.68, showcasing a classic 'buy the rumor, sell the news' scenario.
Ripple's Unfulfilled Rumor: No IPO Announcement
Despite heightened expectations, Ripple Swell did not unveil plans for an initial public offering (IPO). RippleNet's rebranding to 'Ripple Payments' took center stage, emphasizing its commitment to enhancing cross-border payments with crypto-fiat capabilities. The extended network, linking over 70 payout markets globally, aims to address liquidity needs on demand, particularly targeting enterprise crypto adoption.
The absence of an IPO announcement left XRP holders divided, as previous speculation and social media hype fueled the pre-event rally.
XRP Price Consolidation
Following the event launch on Nov 7 and the dissipation of IPO speculations, XRP witnessed a 7% decline. Notably, this drop occurred amid a broader market rally led by Bitcoin.
Examining past Ripple Swell events reveals a recurring pattern. In 2019, XRP experienced a 30% pre-event rise, only to completely retract gains afterward. Similarly, in 2020, a 12% surge before the event was followed by a full retracement in the subsequent two weeks. The same trend persisted in 2021, while the 2022 event stood out with a 34% drop pre-Swell and a 30% post-Swell increase.
The post-Ripple Swell scenario once again reinforces the 'buy the rumor, sell the news' sentiment that has characterized XRP's response to these events.
Disclaimer: The information above is for informational purposes only and does not constitute financial advice or a recommendation to invest.
