Can The Price Of Ripple (XRP) Rally Higher Before The December 12th Snapshot Date?
It is no longer news that on December 12th 2020 at around 12:00am (UTC) the airdrop snapshot of the Spark tokens of Flare, a fork of XRP that will support smart contracts, will be taken. A total of about 45 billion Spark tokens will be airdropped once the Flare blockchain goes live.
As expected, the move has ballooned the price of XRP as investors buy up the token ahead of the snapshot date. Consequently, the price of XRP has gone well over a 100% in the last few weeks alone. Now trading at $0.66, and up 7% in about 24 hours and with the snapshot date still about two weeks ago, the question becomes whether the price of XRP can still go up in the few days ahead.
Since the crypto market is quite erratic, it might be very difficult to make a precise and accurate prediction. At best, one can only make an intelligent guess based on past events and the present momentum of the market. To start with, we might have to take a look at recent history, what happened when holders of certain crypto assets were promised airdrops. Did the price of the assets decline, stay neutral, or surge in the build up to the snapshot date?
In the case of Steem, when the Hive fork was to emerge and to airdrop on the basis of 1:1, the price of Steem kept rising until the last minute of the snapshot date because investors did not want to miss out. Steem eventually reached a price of $0.25, which is the highest that has so far been seen this year.
The same thing also played out during the recent fork of Bitshares (BTS) which resulted to the emergence of New Bitshares (NBS) that was distributed to the holders of BTS on the basis of 1:1. Up to the snapshot date, in anticipation of the airdrop, the price of BTS kept rising until it peaked at $0.051, the highest so far this year.
However, something strange happened during the recent fork of Bitcoin Cash (BCH) which lead to the emergence of BCHA. The price of BCH remained unresponsive to the news of the fork perhaps because there was no excitement about the emergence of BCHA which many believed was merely a product of greed.
But things are different with the emergence of Spark which will serve as the governance token for the smart contract version of XRP. Many are enthusiastic about the potential of Spark and the favourable odds on its path. Therefore, like the case of Steem and Bitshares, in which case investors have confidence in the new chain and token, the price of XRP will most likely continue to rise into the snapshot date before it declines sharply afterwards.
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