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IPFS News Link • Cyberspace and the New Economy

What's in store for Ethereum, XRP in 2021?

• https://ambcrypto.com, By Ekta Mourya

 However, while for a time the said rally was driven primarily by institutions, with Christmas over and the rest of the festive season coming up, one might expect institutions to leave the reins to retail traders.

This has happened in the past as well, on weekends, and despite a degree of institutionalization, the price has dropped when institutions haven't traded as much.

Bitcoin's latest price rally has pushed the cryptocurrency's value higher on the price charts, with BTC briefly climbing to $25,000 as well. However, while for a time the said rally was driven primarily by institutions, with Christmas over and the rest of the festive season coming up, one might expect institutions to leave the reins to retail traders.

This has happened in the past as well, on weekends, and despite a degree of institutionalization, the price has dropped when institutions haven't traded as much.

At the time of writing, the spot exchange volume had already dropped below $2 billion on top exchanges, with there being a low likelihood of retail traders being able to sustain the price at the current level. However, based on exchange volume and OI in Bitcoin, most traders seemed to be looking at the current 2020 price rally with the 2017 outlook, and in that sense, an imminent correction could be due.

Simply put, while the crypto-asset is already in the price discovery range, the volatility and network momentum required for it isn't on the charts currently. 

However, accounting for the same sentiment and logic, XRP and Ethereum are trading at much lower levels. This poses a buying opportunity as the volatility in these markets is higher than Bitcoin's. Ergo, there is a bigger opportunity for Ethereum and XRP in 2021. Despite Bitcoin's dominance and its price touching ATH levels in 2020, its volatility has not neared the 2017-level yet.


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