Jump to content

"Buy the rumor, sell the news" Kind of Thing?


Recommended Posts

I have been slowly buying and holding XRP since late January (way too early in hindsight) and plan to hold it long term. But one thing I've noticed as I've followed crypto is the "Buy the rumor, sell the news" phenomenon. Simply put, the expectations about a future announcement far exceed the real value of the announcement. Because of this, rumors would dramatically increase the price before the news is actually released, and once released, the lackluster news caused a huge selloff since many were expecting more. (See Verge as an example)

The hype with XRP is surrounding the release of xRapid and not an announcement, but the philosophy is still the same. I believe the expectations for the effect xRapid will have on day 1 is very over hyped. I believe xRapid will increase the value of XRP, but it will be a slow process. Banks won't just flip the switch and start sending billions of dollars across every payment corridor with XRP. They will start in small payment corridors using small sums of money and then ramp up.

So after seeing this parabolic increase in price, likely due to speculation, is anyone else planning on temporarily getting out of XRP a few days before xRapid releases? I'm hoping to get back in maybe a month later and doubling my stack. Let me know what you think. 

Link to post
Share on other sites
5 minutes ago, ShyRonnie said:

I have been slowly buying and holding XRP since late January (way too early in hindsight) and plan to hold it long term. But one thing I've noticed as I've followed crypto is the "Buy the rumor, sell the news" phenomenon. Simply put, the expectations about a future announcement far exceed the real value of the announcement. Because of this, rumors would dramatically increase the price before the news is actually released, and once released, the lackluster news caused a huge selloff since many were expecting more. (See Verge as an example)

The hype with XRP is surrounding the release of xRapid and not an announcement, but the philosophy is still the same. I believe the expectations for the effect xRapid will have on day 1 is very over hyped. I believe xRapid will increase the value of XRP, but it will be a slow process. Banks won't just flip the switch and start sending billions of dollars across every payment corridor with XRP. They will start in small payment corridors using small sums of money and then ramp up.

So after seeing this parabolic increase in price, likely due to speculation, is anyone else planning on temporarily getting out of XRP a few days before xRapid releases? I'm hoping to get back in maybe a month later and doubling my stack. Let me know what you think. 

It is a dangerous game you're playing there...

The volume we are seeing is definitely beyond pure retail speculation; we haven't seen this kind of volume for months.

I personally believe that final xRapid testing is on going behind the scenes (on the ledger) prior to launching at Swell...

If you think you will be able to buy back in... Then think again my friend...

Link to post
Share on other sites

Time in the market is better than timing the market.  As for timing the market: 9 times out of 10 you'll lose even if you think you'll win 10 times out of 10.  That's actually backed up by stats.  So if you want the odds NOT in your favour, then try to time the market.  Me? I keep it simple.  I buy in bear market conditions, and I'll sell when I'm decently in profit (DCA sells over many months). 

Edited by 2ndtimearound
Link to post
Share on other sites
4 hours ago, ShyRonnie said:

So after seeing this parabolic increase in price, likely due to speculation, is anyone else planning on temporar

This is not mostly a speculative pump in my opinion.  I think something else is going on that includes big players getting in, or as some have suggested a “soft launch”, but that may not be as likely.

It has retraced a bit but with the anticipation of Swell 10/1-10/2 and xrapid launching I think there is a good chance we see ‘normal ‘consolidation periods punctuated by upward moves at least heading into Oct.

Link to post
Share on other sites

I do see it as a speculative pump: many swing traders trying to get in before it takes off. Seems crypto traders were always reluctant to hold XRP, so they always had to pile in whenever their fears grew about it overtaking other cryptos, and only at the last possible moment (May 2017 and Dec 2017 pumps are both great examples of this). I think that is why this coin goes so vertical when it starts rallying. BTC and ETH don't behave like this nearly as much.

 

 

Link to post
Share on other sites
37 minutes ago, Excerpts said:

This is not mostly a speculative pump in my opinion.  I think something else is going on that includes big players getting in, or as some have suggested a “soft launch”, but that may not be as likely.

It has retraced a bit but with the anticipation of Swell 10/1-10/2 and xrapid launching I think there is a good chance we see ‘normal ‘consolidation periods punctuated by upward moves at least heading into Oct.

That brings up a good point. I need to do some research into the effect Swell has had in the past years. 

Link to post
Share on other sites
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.