Following the rapid pump and dump in XRP price on fake BlackRock ETF news, prominent lawyer John Deaton has shared tips for investors trying to time the market.
The price of XRP saw huge volatility following news that multi-trillion-dollar asset manager BlackRock had filed for an XRP-based spot ETF. The news, which eventually turned out to be fake, garnered much attention, with prominent crypto-friendly attorney John Deaton among those sharing the update.
However, the pro-crypto lawyer has reminded investors who rely on his updates to buy XRP that buying only when there’s positive news is not the best strategy. In purported “financial advice,” Deaton explained how and when to buy and sell XRP.
Specifically, he explained that investors gaining exposure to XRP should do so when there is less hype or trending news. Regarding the fake BlackRock news cycle, Deaton noted that the best time to buy XRP would have been before the news became public knowledge.
Because of the post below, I’m going to do something I’ve never done on this site: I’m going to give financial advice on how to profit off fomo.
You don’t buy any asset based on the new “news” causing people to fomo. That’s when you SELL the asset. Let’s use XRP as an example. https://t.co/iw1lKEdLrB
— John E Deaton (@JohnEDeaton1) November 18, 2023
In breaking down the reason for such an approach, Deaton reckons that by the time investors see the news on social media, the “easy money” has already been made by those with insider information. Hence, a better approach for investors is to buy as much XRP as they want when everyone else is selling.
Buying at such a price means a lower entry point and ensures investors can afford to sell when positive news results in an XRP uptrend. “When there is news that makes it go up 20-30% or more, you can sell when others are now experiencing FOMO (fear of missing out),” Deaton wrote.
Speculating on Court Decision in XRP Case
John Deaton further shared a case study on how an investor may have profited from Ripple’s court victory in July. The price of XRP soared as high as $0.91 on the favorable court ruling by Judge Analisa Torres, meaning investors who bought in earlier could have made significant gains.
Meanwhile, with Ripple’s case against the SEC likely nearing its climax, gaining exposure to the asset might turn out to be the right move if the final verdict favors XRP.
In either case, buying when there’s fear and selling when there is greed is a time-tested investment strategy, and Deaton recommends applying this astutely with XRP to get the best possible returns.
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