No, it’s not clickbait. The actual prediction does exist. It was made a couple of weeks ago by Crypto Rand who happens to be one of the most popular cryptocurrency observers on Twitter. He has 210.000 followers, so he’s earned an audience for sure. But this was just a joke in deplorable taste.
The tweet was short “$XRP to $300 before the end of the week!” and, as you can see it offered no reason behind the forecast. So what to make of this?
Do you remember 2017? It was a crazy year. Many unlikely predictions about high prices in the crypto market became true. But we also learned (the hard way) the influence (and damage) that hype can have.
When you study technical analysis for traditional financial markets, instructors and books are very clear on one thing: it doesn’t matter what your analysis tells you however thorough it is. If relevant news breaks, and it’s related to the asset you’re trading, all bets are off. Hype matters.
Fake news can influence the market every bit as much as authentic news because as long as traders buy them, the market will follow suit. Yes, things will clear out if the story is false, and the market will correct itself, which is quite a painful process.
So is this prediction false? Well, we’re writing this on after two weeks later, and XRP’s price is at $0.30 and trading at red numbers. So it really seems that nothing short of a miracle could bring XRP’s price that high. Real analysts (which Crypto Rand hardly is) are expecting XRP to test the 0.32 resistance level, not to get to 3k.
So why make such a forecast? We don’t really know, but we can hazard some hypotheses.
Everybody loves attention, popular tweeters more than the average people and this kind of post bring attention for sure. Crypto Rand is even posting links from many websites that are covering (and trying to understand) his tweet. The man is having is fun.
It seems that’s all he wanted. He commented on his own tweet a few days later by saying,
“If you were really thinking that $XRP could have a 98,829% price increase in 3 days… You should stop trading right now. Common sense guys.”
So it seems that it was all about having a bit of fun and getting some extra traffic or illustrating the perils in the extreme (and disinformed) predictions that are not a rare occurrence in the crypto verse.
But there’s a lesson for all of us to learn here. If it’s too good to be true, then chances are that it is. This one was exceptionally so because the price boost would have been vast and unprecedented in the crypto verse for the most part. But also, it was all supposed to happen in a single week. Even the reputedly volatile cryptocurrency market can’t move that quickly.
So are predictions about the future value of other coins also bogus? It depends. For instance, John McAfee has predicted BTC to go as high as a million dollars in a few years. So what’s the difference between Crypto Rand’s joke?
McAfee is a successful businessman who’s left a mark in the digital world. He’s an expert in technology and not some anonymous guy who tweets for fun because that’s basically the only achievement he’s ever had. McAfee is an expert, and his prediction is not exactly too good to be true because he gives reasons for it, and it’s not supposed to happen overnight.
Ripple will be a profitable investment for any intelligent trader who knows how to assess fundamentals and be patient when it comes to waiting for the right times to move. But it’s not going to reach USD 300 in seven days. Ever.
Last but not least, get your news from reputable sources. Not from hobbyists who don’t really care about the ethics in mocking you.
[Image courtesy of Pibabay]
Disclaimer: All information provided through this article should not be regarded as investment advice, nor should be taken for granted for crypto trading purposes. Before making any investment or trading plans, make sure to inquire about the information diligently by carrying out your very own research. Thank you.