TOGGLE Insight: XRP - Ripple

Did you hear the big news? More than 400 cryptocurrencies have been added to the TOGGLE database, ranging from big names like XRP to the smallest cryptos you probably have never heard of.

XRP is a token belonging to the Ripple network (aka xCurrent), a blockchain owned by Ripple Labs. The aim of this company is to improve the financial system through a seamless interbank transfer process. Currently, this process is managed by a vast messaging platform known as Swift, overseeing the transfer of almost $6 trillion every single day. However, this process is slow, comes with high fees, and sometimes risk is involved. With the Ripple network, it is said that transactions are confirmed in less than 5 seconds, cost exactly 2 ten-thousandths of a penny, and can handle up to 1500 transactions/second. The ability to exchange funds so efficiently will convert the financial system into a central place for international settlements and interbank payments.

In terms of demand, the crypto has been gaining wider distribution in locations outside America (Europe, Latin America) and since the coin has a fixed supply, we could see a rise in price with increased adoption of XRP in the global financial system.

Even though the company faces regulatory pressure and the future value of the coin depends on the outcome of some litigation, it has been picked up by some of the largest financial institutions in the world (Mitsubishi UFG, Bank of America, American Express). According to analysts, if litigation with the SEC goes smoothly, we could see the price of XRP returning to ~$2 by 2022 and potentially ~$3 by the end of 2023.

TL;DR Recently, on February 14th, TOGGLE published an insight about $XRP, showing that the asset was oversold. Based on XRP’s historical performance, TOGGLE’s AI identified that this may lead to a median increase of 18% over the following 1M, as shown in the chart below. This insight got a 6 out of our 8-star rating system (more on that later)

How did TOGGLE come up with this? TOGGLE uses the power of machine learning and artificial intelligence to analyze data and turn it into easy-to-read insights that you can use to help your decision-making. For this particular insight, TOGGLE's AI analyzed 7 similar occasions in the past to help identify this insight's median projection and confidence band.

The dotted line you see is the expected path, which is based on similar instances in the past. The shaded area represents a confidence band, and XRP's price typically stays within those boundaries if the asset performs like it did in the past. The flat, solid green line indicates where TOGGLE expects the asset to reach. Last but not least, the flat red line is a possible stop-loss level, the point at which $XRP has deviated too far from the expected path and you should reevaluate your position.

How reliable are these insights? Well, that's up for you to decide. TOGGLE uses an 8-star rating system, which evaluates the same stats that institutional investors like to look at when managing money professionally. We ask questions that determine if these conditions have happened before, how accurate they've been, and how frequent they've occurred, and more. This insight received a 6 out of 8 on our star rating system (as seen below), and this encompasses the robustness of the relationship between the driver and subsequent price action.

While crunching the numbers, TOGGLE also studied XRP’s momentum and detected a consistent relationship between the driver and subsequent asset movement. The chart below highlights the times in the past when the driver (1W - 12M momentum) was at a similar level as right now. For this insight, TOGGLE’s AI identified 7 different times, or “episodes,” when a similar set-up has happened in the past. Of those episodes, TOGGLE found that ~80% of those resulted in an upward move over a 1M horizon, which helped form this insight.

So, how do I use this info? Ultimately, what sets TOGGLE apart is that when it comes to investing, we won’t tell you what to do, but we’ll be here to give you the fullest picture to help you trade with confidence. We recommend reading the full insight here to get the complete picture, and better guide your decision-making.