The article discusses the potential reactions from retail and institutional investors if the price of XRP experiences substantial surges. According to the host of the Digital Assets Daily YouTube channel, if XRP reaches prices between $12 and $25, over 50% of retail investors may exit the market. This proportion is expected to rise to 50% of the remaining retail holders when XRP reaches $50 to $100. The fact that most investors sell their holdings before an asset reaches its peak, known as the “disposition effect,” is a concern. However, a crypto investor remains skeptical about XRP soaring by astronomical margins, suggesting that the current positive sentiment may not reflect market reality.
On the other hand, the founder of Digital Perspectives emphasizes that retail investors are often seen as “dumb money” compared to institutional investors. Institutions and banks recognize the long-term value of XRP and are more likely to hold onto their investments until the asset reaches its peak. This trend of retail investors exiting prematurely and missing out on significant gains is not unique to XRP or the crypto sector but has occurred throughout financial history.
Market experts continue to project soaring rallies for XRP, with predictions ranging from a 24,577% surge to $128 to a rise to $11 with a potential $1.5 trillion market cap. However, caution is advised as predicting XRP’s price trajectory remains challenging. As of press time, XRP is trading at $0.5299, showing a 1.81% increase over the past 24 hours.