Bitcoin and Ripple’s XRP rose by more than 2% in two days, with a rebound in price that brought optimism. The broader cryptocurrency market is seeing a brief recovery after a dramatic crash during the first week of February. The recovery followed the Dow Jones Industrial Average’s crossing of the 50,000 mark on Friday, marking the first time it had reached this milestone.
While XRP had plunged to a low of $1.1, Bitcoin fell to the $62,800 range. This was much below its previous all-time high of $69,869, which it reached in 2021. Fears of another pullback were on the cards, but the comeback settled the unsettled market.
Now that Ripple’s native token XRP and Bitcoin saw a brief surge, should you start taking an entry position? In this article, we will highlight what to do next.
Also Read: XRP Holders Don’t Panic: Here’s What Smart Investors Are Doing
XRP & Bitcoin: A Wait and Watch Scenario
Dow Jones has peaked at the 50,115 mark, and the stock market could experience a bit of a correction. If the stock market corrects, the cryptocurrency market could also see a reduction in price. Another round of volatility is expected with prices peaking at their highs. It is advised not to fully invest in Bitcoin and XRP at these levels.
If there is spare cash of $1,000, it is best to put in $500 in XRP and Bitcoin first. While the market is expected to experience some volatility, invest the rest of the amount during the dips. This helps in dollar-cost-averaging (DCA) and reduces the chances of a bigger loss. The move balances your portfolio by buying at both the highs and lows.
Bitcoin is known for its comeback after every dip, but the same cannot be said for XRP. The leading altcoin remains stagnant in price, leaving investors no option. For XRP, the best trading strategy is swing trading, where investors can set a target and sell as soon as it reaches it.