Doctor Profit, a renowned trader known for high-leverage plays, has announced a strategic move from XRP into Ethereum.
He disclosed his decision in a tweet, stating that he was pivoting from XRP to ETH after securing a 600% profit on his earlier XRP trade.
Notably, he did not provide specifics about the XRP trade. Meanwhile, it likely stemmed from profit-taking since the coin peaked at $3.40 in January or during its more recent rally to $2.65. It is also possibly a leveraged trade on these spot market movements.
With XRP losing momentum for further upside in recent times, Doctor Profit sees this as a good time to enter Ethereum. Notably, Ethereum is currently trading at a significant 30% discount on the yearly timeframe. Meanwhile, XRP is up 342% over the past year, trading at $2.38.
Not a Bearish Call on XRP
In his message to followers, Doctor Profit emphasized that investors should not mistake his exit from XRP for a bearish outlook. He reaffirmed his long-term belief in XRP’s potential and dismissed fears of an imminent crash.
Responding to growing concerns about a possible XRP price collapse, he noted that “the simple and complicated answers are both a big no.” He believes XRP will appreciate, although likely not as strongly as some of its rivals in the near term.
Furthermore, he explained that the move is about capital appreciation. Specifically, he is realizing gains in USD and reallocating to an asset he believes is poised for stronger short-term growth.
Why Ethereum Now?
Doctor Profit has reinvested all profits from XRP into Ethereum, citing confidence in a major near-term rally for ETH. According to him, while XRP offers strong fundamentals and remains a top long-term hold, ETH currently presents a better opportunity for short-term upside.
Notably, ETH’s price has increased by 56% in the past 30 days alone, while XRP has only gained 11% during the same period. While XRP’s short-term performance pales compared to ETH, Doctor Profit still believes the altcoin can achieve impressive gains the rest of the year.
Meanwhile, a subtle justification arises when considering XRP’s 343% yearly gain to ETH’s red position. This contrast may explain why Doctor Profit sees more upside potential in Ethereum, especially considering XRP has already experienced a 6x surge during this cycle.
It’s worth noting that both XRP and Ethereum are still trading at a significant discount from their previous all-time highs. Both are underperforming Bitcoin, which is currently in a price discovery phase.
Plans to Re-enter XRP
Importantly, Doctor Profit made it clear that he intends to return to XRP when market conditions are favorable. He views his current exit as tactical, not emotional, and plans to look for a better re-entry point to catch XRP’s next upward move.
Other prominent market watchers, such as Dennis of Virtual Bacon, have expressed similar views on XRP. Specifically, Dennis is waiting for a 20% dip in XRP to around $1.85 before making his first substantial investment. He aims to position himself ahead of the next FOMO-driven XRP rally.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
