Some XRP community figures have called attention to the possible reactions from retail and institutional investors if XRP surges astronomically.
Amid forecasts of substantial price surges for XRP, pundits dissect the potential reactions from different investors. Some individuals believe retail investors could leave the market before its peak while institutional investors capitalize on the gains.
Retail Investors
According to the host of the Digital Assets Daily YouTube channel, XRP’s journey towards $100 might prompt a significant shift among retail investors.
If XRP sees $12-$25 more than 50% of Retail will exit. Then at $50-$100 another 50% of remaining Retail XRP will be sold…. Though many will have met their goal…. Statistically 99% of Investors never see the peak of their investments.
— Digital Assets Daily (@AssetsDaily) August 22, 2023
He noted that if the price reaches $12 to $25, over 50% of retail investors could exit the market. According to him, this proportion could rise to 50% of the remaining retail holders when XRP hits $50 to $100.
He emphasized that some investors would have reached their targets at such prices. However, the fact that most of them would have sold their holdings before XRP reached its zenith remains a concern.
These observations highlight a recurring pattern—many investors exit positions well before an asset reaches its peak value. Market experts call this phenomenon the “disposition effect.”
However, a crypto investor remains skeptical about XRP soaring by astronomical margins. He suggested that the current positive feelings many have about the high value of XRP might not actually reflect market reality.
In response, the Digital Assets Daily channel host drew attention to the claim that XRP can’t be cheap, as noted by David Schwartz, Ripple’s CTO, in November 2017.
Institutional Investors
The founder of Digital Perspectives chimed in, stressing that while retail investors might capitalize on gains before the asset reaches its peak, institutions and banks recognize the long-term value of XRP.
You best believe that Institutions and Banks who will ultimately want to hold #XRP and not just use it. They know better than anyone this truth about us retail investors. Afterall,remember,they call us retail folk,dumb money. True story. https://t.co/SfdQ5kMmXQ
— Digital PerspectivesPermaBull? (@DigPerspectives) August 23, 2023
This underscores a broader narrative where retail investors are often seen as “dumb money” compared to their institutional counterparts.
This trend isn’t unique to XRP or the crypto sector alone. Financial history is rife with instances where retail investors exited prematurely, missing out on astronomical gains realized by institutions that held steadfast until an asset’s peak.
XRP Price Outlook
Recall that Linda P. Jones, a Wall Street veteran, likened selling XRP to selling early stakes in tech giants like Microsoft or Apple.
A report from Northern Trust forecasted a whopping $14.5 trillion investment in the digital asset space. Jones highlighted the magnitude of this figure and drew attention to the potential loss of selling XRP prematurely.
These comments have prevailed at a time when market experts continue to project soaring rallies for XRP.
Notably, Egrag, a respected analyst, predicts a staggering 24,577% surge to $128, citing historical trends. Another analyst, AJ from the BitBoy Crypto team, anticipates a rise to $11, suggesting a feasible $1.5 trillion market cap for XRP.
However, it’s crucial to exercise caution amidst the speculation. As with the broader crypto landscape, predicting XRP’s price trajectory remains challenging. XRP is changing hands at $0.5299 as of press time, up 1.81% over the past 24 hours.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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