XRP community figure and market expert EGRAG compares XRP to Nvidia stock, charging investors not to sell too early.
He presented this commentary at a time when XRP is suffering one of the biggest declines in a generally unfavorable market. For the uninitiated, the U.S. SEC recently filed a notice of appeal in the Ripple case, potentially dragging the lawsuit for another two years.
Reports of the appeal triggered a steeper decline for XRP amid an already bearish market. As a result, XRP tumbled 9.77% on Oct. 2, and by another 3.15% yesterday, now trading at a 1-month low of $0.5256. At the current price, XRP has slumped 19.18% since Sept. 30.
Ark Invest’s Nvidia Blunder
However, EGRAG remains confident in the altcoin’s potential, with this optimism demonstrated in his latest commentary. The market analyst advised market participants not to follow the footsteps of Cathie Wood, American investor and founder of investment firm Ark Invest.
Do not be like Cathie Wood who sold her shares in Nvidia here: #XRP #Crypto pic.twitter.com/YM3C3aTmXK
— EGRAG CRYPTO (@egragcrypto) October 3, 2024
EGRAG’s charge was in respect to Wood’s investment decision regarding Ark Invest’s holdings of the Nvidia stock, one of the best performing assets in recent years. For context, market data suggests Ark Invest missed out on $1.3 billion gains by periodically selling off its Nvidia holdings too early.
Notably, over the past two years, Ark Invest has sold more than 1.3 million Nvidia (NVDA) shares. Interestingly, most of this sale, amounting to 859K shares, occurred in Q4 2022, when NVDA traded at around $14.5 ($145 before the 10-for-1 stock split). At press time, Nvidia currently changes hands at $122.85, a 747% increase since Q4 2022.
The investment firm sold off most of its NVDA holdings before the advent of ChatGPT, which triggered a surge in the performance of AI-focused assets. Particularly, the 2022 sales alone carried out by Ark Invest resulted in missed profits of over $854 million.
A Comparison Between NVDA and XRP
EGRAG compared Nvidia’s performance to XRP, suggesting that the XRPL native token could record a similar price surge. It bears mentioning that before its impressive run, NVDA also underperformed between Q4 2007 and Q3 2015, a period of eight years.
Similarly, XRP has been performing below expectations since it collapsed from the January 2018 peak of $3.31. At its current price, XRP is down more than 84% from the $3.31 high. The altcoin has failed to even reclaim the $1 mark since it dropped below it in December 2021.
Despite the gloomy performance, EGRAG and other market analysts believe XRP could witness a major breakout. Market veteran and XRP critic Peter Brandt also identified this potential in a recent analysis.
Notably, most of the XRP analyses from other market commentators have produced varying price targets for XRP, each of whom would skyrocket modest investments to unimaginable heights.
For instance, just last month, EGRAG leveraged the Elliott Wave theory to argue that XRP could rally to a price between $27 and $33. Moreover, in August, another market analyst, Mickle, predicted a possible XRP rally to $44, a more ambitious target.
If any of these targets materialize, investors who sold XRP below the $1 mark would see themselves making similar mistakes as Wood’s Ark Invest did with Nvidia. However, there is no guarantee that XRP would replicate NVDA’s run. As a result, investors should not see EGRAG’s commentary as an investment charge.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
