Tim Draper, a favorite among the crypto community, recently expressed an optimistic view towards XRP’s future price movement on an internet forum. As a future investor asked whether he can expect profit off from buying XRP in October 2019, Tim Draper replied to the Quora question by stating that the asset’s price is set for ‘explosive growth.’
Both a prominent VC investor and a favorite Bitcoin bull, Draper stated his optimism towards the expansion of Ripple’s products. As for XRP, he expects that the asset is at a state of a ‘calm before the storm,’ as the price will rapidly explode in the short-term.
‘Experts agree that the crypto winter is coming to an end. This means that the period of market decline is over and, in the future, we will expect growth and a favorable mood to enter the market’ stated Draper in his answer when commenting on the general state of the cryptocurrency market. However, he believes that ‘things are not so simple with Ripple’.
Comparing Bitcoin’s price expansion that led to a tripled price increase in the last five months, Draper stated that the expects a similar result from XRP’s price action. As to why Ripple’s recent expansion has not reflected positively on XRP’s price, the VC investor stated that it is ‘no secret’ that Bitcoin is the dominant asset in the market and that its direction affects the rest of the projects.
Draper believes that in more preferable circumstances, XRP’s price would have already reached price levels between $0,6 and $0,9 however that is not the case given Bitcoin’s 47% price correction since its yearly high.
As for the recent decisions made by the Ripple company, which stirred quite the controversy in the already controversial XRP community, Draper believes that Ripple’s actions are justified. ‘The company is actively developing, expanding the sphere of influence, enlisting the support of large financial institutions and constantly improving the technology of transfers’ stated Draper.
He ended his answer on the note that everything at the moment indicates that we are in the phase of a calm before the storm and that XRP is ultimately heading for explosive growth.
BTC still controls the fate of the altcoin market
The ultimate rate of adoption of Ripple’s XRP product is unknown, despite the optimistic view that some of the asset’s holders have. While XRP is ambitious in what it seeks to offer to the world in terms of revolutionizing the way we transfer money all around the world, we have still to see whether XRP will be fully developed, to the point that it can achieve its use case.
As for now, XRP shares the same fate as the rest of the altcoin market by being heavily influenced by Bitcoin’s price swings. While a number of assets hold steady against Bitcoin’s recent plunge, huge projects such as Ethereum have lost most of the value that they gained during the year. It certainly seems that the altcoin segment is not strong enough to fare well in a bear market, it will take for Bitcoin to rise again before other projects follow suit price-wise.