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For the first time since December 2017, XRP, Ripple's native cryptocurrency has surpassed Ethereum on September 21
However, the so-called " flippening " for XRP does not it lasted a long time, as Ethereum (ETH) recorded a 17% price increase and added $ 3 billion to its market capitalization.
Ripple has just flippened Ethereum for the first time since December 2017. [19659003] Absolutely insane market pic.twitter.com/YZZWgfDtoP
– Joseph Young (@iamjosephyoung ) 21 September 2018
The sudden increase in the price of permitted ETH Ethereum to overtake Ripple and secure second place in the global cryptocurrency ranking.
The Trend of Ethereum vs. Ripple and Bitcoin Cash
In December 2017, Ripple exceeded Ethereum both when the price of XRP initially increased to $ 1.50, and when it peaked at $ 3. [19659003] Even when XRP was at its peak, Ripple's moment reappear did not last, because Ethereum eventually regained momentum and added billions of dollars to its market valuation.
A similar trend occurred when Bitcoin Cash (BCH) passed ETH after reaching $ 5,500. At the time, in November 2017, Ethereum co-creator Vitalik Buterin said:
Congratulations on this. Seriously. @rogerkver @JihanWu @deadalnix pic.twitter.com/UXYdEcRn4y
– Vitalik Non-donor of Ether (@VitalikButerin) 12 November 2017 [19659009] Eventually, in a few weeks, Ethereum found its way to position number 2 in the global rankings, maintaining its position in the cryptocurrency market as the second most dominant and valuable resource.
In the past several hours – despite the strong momentum shown by Ripple after recording a 110 percent increase in value this week- Ethereum rebounded and added $ 3 billion to its market capitalization [19659005] Ripple flippened Ethereum . Investors in ETH do not bear it. So they took the matter in their hands.
Ethereum up 17%
What is this sorcery? pic.twitter.com/AM3J9ZJcqv
– Joseph Young (@iamjosephyoung) 21 September 2018
The main factor in Ripple's price increase was clear enough; due to the massive oversold conditions, a spike in volume has led investors to engage in FOMO (fear of losing), creating a domino effect in major exchanges.
As reported yesterday by CryptoSlate, it is possible to argue that the sudden increase in the value of XRP was caused by the announcement of Ripple to release a cryptocurrency product in October, but due to the lack of information on the scheduled launch of the product, it is not clear what kind of impact the product will have to launch on the market.
As such, fully attributing the price trend of XRP to the planned announcement of Ripple is weak and supporting the movement of XRP with the technical indicators and the evidence is much stronger.
However, the same argument can be attributed to ETH for one main reason: both XRP and ETH have undergone a massive sell-off between June and August. Both cryptocurrencies suffered losses from 40 to 50% against the US dollar, while Bitcoin lost only 9%.
If XRP started a short-term corrective rally and then a proper upward movement, it was only a matter of time for ETH to follow and start a similar movement, which it did.
In a sense, Ethereum has recovered and added billions to its cap market exactly when Ripple was expected and most traders expressed their skepticism about the event. As impressive as the XRP rally, it was not enough to replace Ethereum as the second most important cryptocurrency in a seven-day period.
The XRP needed to avoid a significant short-term fall as a result of oversold conditions. In the short term, it is unlikely to see XRP flippen Ethereum again.
Where the market goes Next
Brazil's largest independent intermediary, meanwhile, today announced that it would launch a Bitcoin and Ethereum exchanges to process transactions on behalf of its clients.
The announcement of Grupo XP, owner of XP Investimentos SA, will expose the encrypted market to 3 million Brazilian investors. While CEO Guilherme Benchimol admitted he was not a crypto-market fan himself, he said the question is simply too strong to ignore it:
"I must confess that this is a theme I would rather not have, but it does. We felt obliged to start making progress in this market. "
The decision by Grupo XP to integrate the crypto in this particular situation is significant, since the Brazilian government has asked the banks not to deal with cryptography. With positive progress on regulation in the development of cryptographic markets, it can be said that the short-term market rally will be well supported by the rapid maturation of the international market infrastructure.
Ethereum, currently in second place by market capitalization, is active 9.14% in the last 24 hours. ETH has a market capitalization of $ 24.82 billion with a 24-hour volume of $ 2.85 billion
CryptoCompare Chart
Ethereum has risen by 9.14% in the last 24 hours
Photo of cover by Max McKinnon on Unsplash
Disclaimer: The opinions of our writers are exclusively their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate approve any projects that may be mentioned or linked in this article. Buying and exchanging cryptocurrencies should be considered a high-risk activity. Please do your due diligence before taking any action related to the contents of this article. Finally, CryptoSlate assumes no responsibility in case of loss of money in the trade of cryptocurrencies.
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