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Expert Shares Two Approaches to Investing in XRP

Abdulkarim Abdulwahab
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Expert Shares Two Approaches to Investing in XRP

A prominent figure in the XRP community, WrathOfKahneman (WOK), recently shared his insights on two approaches to investing in XRP.

The two strategies highlight different perspectives on how to approach the asset, focusing on adoption and its utility within the XRP Ledger (XRPL).

Approach One: Betting on XRP Adoption Beyond Ripple

WOK pointed out that one potential investment approach focuses on the adoption of XRP, particularly beyond Ripple’s ecosystem. This strategy revolves around the belief that XRP could gain wider use across various industries and platforms outside Ripple’s direct effort.

Other influential voices in the XRP community, such as Panos Mekras, also support this perspective. According to Mekras, the XRP ecosystem is robust without Ripple. He cited significant integrations like Xahau, the EVM sidechain, Flare, Root Network, Axelar, Coreum, and Anodos as “making XRP the most powerful ecosystem on Earth.”

For investors, the hope is that this broader adoption will eventually push the price of XRP higher as demand for the token increases across different sectors.

Approach Two: Focusing on the XRP Ledger Utility

On the other hand, WOK also highlights an approach centered on XRPL use in diverse ways and sectors. This approach sees value in XRP as the gas token of the XRP Ledger, which powers the blockchain’s operations. 

For instance, WOK commends the role of meme coins on XRPL, saying, “glad they bring value to the ledger.”

By investing in the development and utilization of the XRP Ledger itself, investors could tap into growth from the ledger’s increasing use across various applications, from finance to supply chain management. 

This perspective sees XRP’s value linked directly to the volume and activity on the XRPL, which may drive the price of the token up over time.

Community Weighs In

The conversation gained traction with community members expressing their views about investment in XRP.

X user “ResourceEvolution” emphasized that the XRPL and XRP are inherently linked. They believe that higher transaction volumes on the XRPL will lead to a natural increase in XRP’s price.

Other commenters took a more humorous approach, comparing the decision to invest in XRP to taking the blue pill or red pill. They draw on the famous Matrix analogy to depict the choice between betting on XRP adoption beyond Ripple or diversifying across the XRPL.

“Either buy into that ‘adoption’ hopium or diversify. Both paths get you somewhere,” the statement read.

Meanwhile, Lon Copper expressed excitement about both approaches. He suggested that investors should consider both to understand the potential of XRP in the coming years. 

XRP Beats Bitcoin in Poll for Best Long-Term Technology

Abdulkarim Abdulwahab
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XRP Beats Bitcoin in Poll for Best Long-Term Technology

XRP has emerged as the top contender over Bitcoin for the best long-term technology, according to the views of community members.

These comments came up on the back of a poll by Patrick Bet-David, the host of the popular PBD Podcast. In a tweet, Bet-David conducted a poll asking crypto community members which crypto asset has the best long-term technology.

XRP Beats Bitcoin as Best Long-Term Technology

Among the contenders he listed were XRP, Bitcoin, Ethereum, and “Other.” The poll quickly gained traction and gathered 178,803 votes on X (formerly Twitter). Interestingly, XRP claimed 43.8% of the vote, outpacing both Bitcoin (BTC) and Ethereum (ETH).

Bitcoin, the world’s largest cryptocurrency by market cap, came in second place with 35.2% of the votes. Ethereum, the leading smart contract platform, garnered just 8.9%. Additionally, 12% of voters selected “Other.”

Ripple’s growing presence in cross-border payments and its ongoing legal battle with the SEC likely contributed to the increased interest and confidence in XRP’s long-term potential.

XRP Victory “Explains Why Bitcoin Maxis FUD XRP”

Meanwhile, with the outcome of the poll, the XRP Army has been celebrating the result. “XRP wins in every poll where XRP is an option,” remarked Vet, an XRPL validator.

Interestingly, the result unsettled critics, particularly within the Bitcoin community. Pro-Bitcoin commentator Wayne Vaughan remarked, “It’s absurd that XRP is winning this poll.”

Community reactions
Community reactions

Other commentators, like Blockchain Backer, seized the opportunity to argue that this outcome is exactly why Bitcoin maximalists are attacking XRP. 

“Look at the size of interest,” he said. “XRP is taking market share, causing panic and competitor attacks. Instead [of FUD], just embrace the XRP movement.”

Cardano Community Reacts

Notably, the poll amassed 1.9 million views and sparked widespread discussion from the broader crypto community. Many users, especially from communities not featured in the poll, offered detailed explanations for their choices.

For instance, members of the Cardano community argued that Cardano is the best long-term technology. One X user pointed out several reasons for their preference, including Cardano’s limited supply of 45 billion ADA, its decentralized ecosystem, and its remarkable 0% downtime.

Additionally, they cited that 82% of the supply is already in circulation, and 22 billion ADA is currently staked. The user also highlighted the benefits of liquid staking, where ADA can be sold or moved at any time, and noted that more than 2,700 staking pools are available.

Dogecoin Tests $0.25: Is a Breakout Rally Possible?

Albert Brown
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Dogecoin Tests $0.25: Is a Breakout Rally Possible?

Dogecoin drops by 4.68%, testing the $0.25 support zone. With the price trapped within a triangle pattern, is there a breakout opportunity for DOGE to hit $0.30?

As top cryptocurrencies witness a pullback, the meme coin market capitalization drops by 4.5% to hit $67.4 billion. Among the top meme coins, Dogecoin is down by 4.68%, putting the $0.25 psychological support at risk.

As the chances of Bitcoin revisiting its $90,000 support increase, the highly volatile meme coins are on the verge of taking a major dip. Will this downfall crash Dogecoin prices under $0.20? Let’s find out.

Dogecoin Price Trend Trapped in a Triangle

On the 4-hour chart, Dogecoin’s price action shows a long-established bearish trend. This bearish trend has resulted in a resistance trendline.

Dogecoin price chart
Dogecoin price chart

With the recent failure to break above this trendline, DOGE has retested the crucial demand zone. The price recently found support at $0.245.

Currently, Dogecoin is trading at $0.2520, with a minor price rejection near the support zone. The price action is forming a descending triangle pattern, with the resistance trendline and lower support zone.

The recent price rejection suggests that DOGE may be preparing for a bullish reversal to retest the overhead trendline. Supporting this potential rebound, the daily RSI shows a slight uptick near the oversold boundary.

Within the triangle, Dogecoin has previously staged multiple bullish reversals near the support zone, increasing the chances of a price comeback.

Will Dogecoin Bounce Back From $0.25?

Crypto analyst Ali Martinez supports the idea of a DOGE rebound. According to his recent tweet, the price action on the 4-hour chart signals a potential bullish turnaround, with a buy signal flashing on the TD Sequential indicator.

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Given this bullish outlook, if Dogecoin breaks above the overhead trendline, a triangle breakout rally could result in a high-momentum move.

Based on pivot levels, this breakout rally could target the R2 resistance pivot level near the $0.30 psychological mark.

Conversely, a breakdown from the triangle could lead to support levels at the S2 and S3 pivot levels, at $0.22 and $0.19, respectively.

Analyst Identifies Cardano Bullish Channel Formation with Upside Potential: Here’s ADA Next Target

Albert Brown
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Analyst Identifies Cardano Bullish Channel Formation with Upside Potential: Here’s ADA Next Target

While Cardano continues to trade in the red, an analyst sees a rebound ahead, citing a key target at $0.94.

The global crypto market capitalization currently stands at $3.26 trillion, marking a 3.4% decrease as top cryptocurrencies faced declines. 

Specifically, Cardano mirrored the downward trend, experiencing a 2.67% price decline in the past 24 hours. Its seven-day performance also shows a 3.11% drop. 

Key Targets for Cardano

Despite the recent decline, market analysts remain optimistic about Cardano’s price trajectory. One analyst on TradingView highlighted significant technical indicators pointing to a potential recovery.

According to the analysis, Cardano broke through resistance levels, establishing a new trading range. 

The analyst noted that a perceived bearish RSI divergence was invalidated as the price maintained its upward momentum, reinforcing a bullish outlook. The report also pointed to Cardano’s price consolidating near the lower boundary of a parallel channel, suggesting a potential rebound. 

If the structure holds, the price could target the $0.90–$0.94 range as the next resistance level. The analyst emphasized that ADA remains positioned for further gains as long as it respects the lower trendline. However, any failure to hold support at this level could shift the trend.

Bullish Channel Formation From TradingView
Bullish Channel Formation for Cardano From TradingView

Divergence Despite Initial Bullish Momentum

Notably, Cardano’s price moved in line with the analyst’s projected trend by Monday evening. However, the asset later deviated from the anticipated direction, introducing uncertainty into its short-term outlook. 

Meanwhile, a separate analysis from Tim Warren, a popular crypto analyst, suggested a more ambitious future for Cardano.

Warren projected that Cardano could surpass assets like Dogecoin and USD Coin, positioning itself as the sixth or seventh-largest crypto. He identified two major catalysts that could drive ADA’s value significantly higher. 

The first was a strong bull market cycle, which historically propels leading cryptocurrencies to new highs. The second was the potential adoption of Cardano’s blockchain for U.S. government expenditure tracking.

Warren estimated that if such adoption materialized, ADA’s market capitalization could reach $250 billion, translating to a price target of $7 per unit.

Positive Market Sentiment

Cardano’s network activity also reflects increasing engagement. A report from IntoTheBlock highlighted a rise in daily active addresses.

The data showed notable increases over a seven-day period: new addresses grew by 4.79%, active addresses by 11.99%, and zero-balance addresses by 12.26%. These metrics indicate heightened user activity and suggest sustained interest in the Cardano network.

Cardano Daily Active Addresses
Cardano Daily Active Addresses

Ethereum Crashes Below $2,700: Is $2,400 Now on the Table?

Albert Brown
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Ethereum Crashes Below $2,700: Is $2,400 Now on the Table?

Ethereum faces another bullish failure, reversing from the $2,750 resistance zone. With a bearish crossover in EMAs and declining momentum, will ETH drop to $2,400?  

With Bitcoin crashing under the $96,000 mark, Ethereum’s price recovery rally quickly hit the brakes. The move marked another bullish failure in Ethereum to cross above the $2,750 supply zone.

With an intraday pullback of 2.90%, ETH is back at a market price of $2,663. Will this bullish failure drop Ethereum back to $2,400? Let’s find out.

Ethereum Price Takes Another Reversal

In the daily chart, the Ethereum price trend maintains a declining flow as the broader market remains volatile. Taking a double-top reversal in late 2024, Ethereum is now down by nearly 35%.

Ethereum price chart
Ethereum price chart

As the formation of the lower-high trend continues, Ethereum has found short-term support at $2,600. Currently, the short-term consolidation challenges the overhead supply zone near $2,750.

However, the recent intraday pullback has undermined the 3% surge last night, which attempted to challenge the overhead ceiling. With another reversal, Ethereum is now likely to retest the $2,600 support level.

A bearish closing price will likely test the immediate support level near $2,400. Increasing the chances of a bearish continuation, the recent death cross between the 50-day and 200-day EMA triggers a sell signal.

Furthermore, the declining 100-day EMA is on the verge of crashing under the 200-day EMA line. This will mark another sell signal from the dynamic EMA lines.

Additionally, the intraday pullback has undermined the recent crossover in the MACD and signal lines. With a drop in bullish histograms, the MACD and signal lines are likely to regain a bearish alignment.

Ethereum Saviors: ETFs and Declining Exchange Reserve

Despite being an underperformer among the top cryptocurrencies, Ethereum has some hope of reversal. Over the past few weeks in February, the U.S. spot Ethereum ETFs have seen an inflow of 145k ETH tokens.

This is almost seven times more than all of January’s inflows. The growing institutional demand signals a potential recovery ahead.

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Furthermore, a recent post on X by Santiment highlights a massive movement of Ethereum away from exchanges.

In particular, since Ethereum’s inception, the supply on exchanges has reached its lowest point. Now, just 6.38% of the total available supply remains on exchanges. Additionally, 9.2% of all discussions about altcoins are currently focused on Ethereum.

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As the market engages more with Ethereum and institutional support grows, the second-largest cryptocurrency may be poised for a bullish rebound.

If this happens, Fibonacci price action analysis suggests the next resistance level near the 50-day EMA at the psychological $3,000 mark.

Solana Price, Sentiment and Social Engagement Tanking Amid LIBRA Token Fallout

Okoya David
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Solana Price, Sentiment and Social Engagement Tanking Amid LIBRA Token Fallout

Several key metrics indicate that Solana may also be feeling the heat from the recent backlash following the spectacular crash of LIBRA.

Amid the fallout of the LIBRA token debacle, the memecoin craze that has taken hold of the crypto market over the past year has again come under question. This scrutiny now appears to be impacting sentiment around Solana, which has been the biggest winner of what some have termed the memecoin supercycle.

Solana Price and Social Metrics Tank

Several key metrics indicate that Solana, the de facto home and fuel for memecoin activity, may also be feeling the heat from the recent backlash following the spectacular crash of LIBRA, a Solana-based token initially backed by Argentina President Javier Milei.

On Tuesday, February 18, crypto social intelligence platform LunarCrush Analytics highlighted that the digital asset was on track to hit its lowest sentiment, social engagement, and price in 2025. At the time of writing, it has.

Data from the platform suggests that these metrics have generally been in a downturn since President Donald Trump’s inauguration on January 20 but have especially taken a negative turn since Friday, February 14, aligning with the LIBRA launch.

Solana price and social metrics plummet
Solana price and social metrics plummet. Source: LunarCrush

Since the controversial token launch, Solana’s price has dropped over 17% from just below $200 to nearly $166 at the time of writing. At the same time, social engagement has fallen over 35% from about 34 million to just below 22 million. Furthermore, sentiment has plummeted 16% from 82% to 69%.

The rout comes as revelations from the LIBRA collapse suggest a broad market manipulation scheme driven by network insiders to profit from the memecoin craze. One whistleblower has explicitly alleged that these players have siphoned over $200 million across multiple memecoin projects. 

But Solana is no stranger to controversy as strong ties to FTX had initially seen it crash alongside the exchange. However, it quickly rebounded within months as technological improvements drew attention away from its proximity to what some have called the largest financial fraud in history.

Analyst Says Dogecoin Preparing for $6 in 2025

Sam Wisdom Raphael
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Analyst Says Dogecoin Preparing for $6 in 2025

A prominent market analyst believes Dogecoin is preparing for huge moves this year, 2025, suggesting a possible 23-fold increase.

The Dogecoin (DOGE) price action has been at the center of attention over the past few weeks due to discussions around the meme coin’s potential. DOGE is down 21.17% this year, but market analysts believe its comeback would not only recover these losses but also lead to new all-time highs.

One such analyst, “Doge Lord,” called attention to a five-wave Elliott Wave structure that could trigger such a massive comeback run. In his latest analysis, he revealed that he was watching the asset closely, as it navigates the third wave of this prevalent structure on the weekly chart.

Dogecoin Trades Within Elliott Wave Structure

For context, Dogecoin began this Elliott Wave structure with an impressive rally in January 2024, soaring to a high of $0.2288 by March 2024 on the completion of Wave 1. However, Wave 2 came with a massive pullback, culminating in a collapse to a floor of $0.0805 in August 2024.

Following this Wave 2, Dogecoin’s price recovered on the back of the third wave, as the meme coin leveraged the President Donald Trump-led upsurge in the broader market to hit four-year highs around $0.4843 in December 2024. 

Despite the ongoing correction, Doge Lord’s chart indicates that Dogecoin is still trading within Wave 3. The chart suggests DOGE is on the verge of a rebound from the ongoing correction, with an imminent rally to the Fibonacci 1 level, which aligns with a new all-time high of $1.1293. Notably, this would mark the end of Wave 3.

Dogecoin 7D Chart Doge Lord
Dogecoin 7D Chart Doge Lord

Pullback Before the Upsurge

Meanwhile, the fourth wave is expected to trigger a pullback below the $1 mark. According to the chart, this pullback could push Dogecoin toward the $0.7702 level, which the meme coin could leverage as a support to hedge against any deeper crash.

Interestingly, Doge Lord expects a recovery to ensue with Wave 5, projecting that this wave would result in a rally leading to the 1.618 Fibonacci extension, which corresponds to a price of $6.08. “DOGE preparing for huge moves in 2025,” the analyst remarked upon sharing these findings.

Dogecoin currently trades for $0.2515, down 2.57% today. To hit the $6 mark, the asset would need to rally 2,285% or by more than 23-fold from its current level. While $6 might sound overly ambitious, another analyst Ali Martinez contended earlier this month that $10 could be possible for DOGE.

Texas Bitcoin Reserve Bill Advances as Senate Schedules Public Hearing

Lele Jima
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Texas Bitcoin Reserve Bill Advances as Senate Schedules Public Hearing

The Texas Senate is set to hold its first public hearing to discuss the creation of a Strategic Bitcoin Reserve (SBR) in the state. 

The hearing is holding today, February 18. It will see the states’ policymakers deliberate on diversifying part of Texas’ cash reserve to acquire Bitcoin. 

Texas Strategic Bitcoin Reserve Bill 

This development comes less than a week after the Senate’s secretary received the bill. For context, Senator Charles Schwertner introduced the Texas Strategic Bitcoin Reserve and Investment Act (SB 21) to the 89th Legislative Session. 

The bill proposes that the Texas Comptroller of Public Accounts invests part of the state’s cash into Bitcoin, which will be managed alongside other state-owned assets. 

Notably, the bill is advancing to the next level via a public hearing slated for today, where Texas policymakers will deliberate on whether to establish the Bitcoin reserve. 

US States Considering Investing in Bitcoin 

Meanwhile, Texas is not alone. Many U.S. states have shown interest in establishing Bitcoin reserves following the reelection of President Donald Trump. The U.S. President remains a major advocate of a national Bitcoin stockpile and has also created a working group to assess this initiative. 

Over 15 U.S. states, including Ohio, Kentucky, Pennsylvania, and Georgia, are also considering investing in Bitcoin. While this trend is commendable, some analysts believe a state-level Bitcoin reserve may not impact BTC’s price. 

Nexo’s dispatch analyst, Iliya Kalchev, argued that state adoption of Bitcoin only sends ripples, not waves, into the market. He suggested that its impact cannot be compared to how Bitcoin ETFs drove BTC’s price last year.  

Conversely, popular brokerage company Bernstein speculated that the potential creation of an SBR at the U.S. federal level could usher in the next leg of Bitcoin’s bull market. 

In a note to clients yesterday, the broker indicated that other countries may likely follow the U.S. to establish a Bitcoin reserve, leading to a global race among sovereign nations toward BTC adoption. 

XRP Fair Value Sits at $18,036, Per Discounted Cash Flow Valuation Model  

Sam Wisdom Raphael
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XRP Fair Value Sits at $18,036, Per Discounted Cash Flow Valuation Model  

The true value of XRP may be much higher than its current market price, according to the discounted cash flow market valuation model.

Following the meteoric surge during the 2017/2018 bull run that saw it claim a peak above $3.8, XRP had underperformed relative to the broader market for years. This underperformance spilled into the 2020/2021 bull market, as XRP failed to even reclaim the $2 mark, much less its 2018 all-time high.

XRP Price Under Suppression?

Some commentators attributed this poor performance to suppression from the SEC vs. Ripple lawsuit, which began in December 2020. Others pointed to periodic sales of XRP by Ripple, but the company’s CTO David Schwartz has vehemently debunked these claims.

Now, XRP’s breakthrough occurred last November, when it finally transcended the $0.5 region and recaptured both the $1 and $2 psychological territories. Despite this strong performance, with its price currently trading for $2.34, some market valuation models say XRP’s fair value ought to be much more than this.

Particularly, a valuation using the Discounted Cash Flow (DCF) model suggests its fair market value should be $18,036 per token. It is important to note that this is not a price prediction but an evaluation of what XRP’s worth could be under real-world financial principles. 

The model, built by Silvercliff Partners, applies core banking principles to assess XRP’s potential as a global transactional asset. Notably, Valhil Capital presented this assessment in 2023 as one of multiple models evaluating what XRP’s true value actually is.

Discounted Cash Flow Model Suggests XRP Fair Value is $18,036

For context, the DCF model evaluates XRP’s value by analyzing projected cash flows from global transactions and discounting them to present terms. It assumes XRP will serve as a financial pipeline, processing increasing volumes of global payments over time. 

XRP Discounted Cash Flow Model
XRP Discounted Cash Flow Model

Interestingly, the analysis uses a base global transaction volume of $104 trillion and applies a 2% economic growth rate. It then factors in a 10% discount rate to indicate investment risks and the time value of money.  

One major assumption from this model is that XRP adoption will grow gradually over ten years, starting at 2% and reaching full adoption at 100% by 2031. 

With these factors, it estimates the total present value of XRP’s transaction volume at $915 trillion. Dividing this by XRP’s circulating supply of 50.7 billion tokens at the time of the assessment results in a fair value estimate of $18,036 per XRP.  

XRP Discounted Cash Flow Model 2
XRP Discounted Cash Flow Model 2

Notably, despite the fair assessment, the DCF model has limitations. It does not account for XRP being removed from circulation as a store of value. However, such a factor could actually reduce available supply and drive prices even higher. In addition, the model’s assumptions around adoption rates and discount factors have uncertainties.

More Institutions Gain Bitcoin Exposure Through US ETFs in Q4 2024: Report

Elendu Benedict
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More Institutions Gain Bitcoin Exposure Through US ETFs in Q4 2024: Report

A recent analytical report reveals that institutional exposure to the pioneering cryptocurrency Bitcoin saw notable upticks in the fourth quarter of 2024.

Bitcoin is becoming an asset class of choice among institutional investors. Its historical performance and reputation against inflation have been primary lures to the largest cryptocurrency by market cap.

The approval of the US Bitcoin spot exchange-traded funds (ETFs) last year has made buying the asset easier for traditional retail and institutional investors. Notably, the Bitcoin products have continued to gain traction, recording a cumulative net inflow of $40 billion as of today.

Meanwhile, a recent report shows an impressive uptick in institutions holding US Bitcoin ETFs in the fourth quarter of 2024. These jaw-dropping stats indicate the growing demand for investment tools that allow exposure to the premier asset.

429 More Institutions Bought Bitcoin in Q4

Vetle Lunde, the head of research at K33 Research, shared data showing that 429 more institutional investors bought Bitcoin ETFs in the fourth quarter of last year. The report, drawn from the recent 13F filings, revealed that the number of investment managers holding Bitcoin surged from 1,147 to 1,576 in Q4 2024.

Quarterly Institutional ETFs Exposure

Furthermore, the improved acquisition increased institutions’ shares in Bitcoin ETFs by 113% in Q4 2024. The data shows that the combined assets under management (AUM) for entities holding the US Bitcoin spot ETFs grew from $12.58 billion in Q3 to $26.79 billion in Q4.

Consequently, the percentage of Bitcoin ETFs held by institutions increased. As of December 31, 2024, the unique holders account for 25.38% of the AUM of the US Bitcoin ETFs, up from 21.29% quarter over quarter.

BlackRock’s IBIT Exacts Dominance

Meanwhile, the BlackRock iShares Bitcoin Trust (IBIT) spearheaded the institutional adoption curve in the fourth quarter of 2024. Most institutional investments into the US Bitcoin products flowed into the issuer, which is owned by the largest asset manager by AUM.

IBIT shares owned by investment firms surged to $16 billion by year-end, over 200% higher than their almost $6 billion valuation in Q3. This is also a strong uptick from the $4 billion in Q1 2024.

Institutional Exposure by Issuer

Notably, 13F reports from firms like Goldman Sachs, JP Morgan, Avenir Group, and Barclays Bank further add perspective to these stats. These institutions revealed preferences for BlackRock’s IBIT in their Bitcoin ETF allocations.

Nonetheless, the Fidelity Wise Origin Bitcoin Trust (FBTC) also saw substantial upticks. The issuer is the only other issuer where institutions hold more than $5 billion worth of its shares.

Notably, the massive inflow in Q4 coincided with bullish momentum from Donald Trump’s election win. The pro-Bitcoin president flirted with cryptocurrency while vying for the presidency, attracting institutional interest in the sector.

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