Cryptocurrency XRP (Ripple) soared above $ 0.75 on Monday, doubling the price since the opening of the day and again moving to third place in the ranking of cryptocurrencies by capitalization.
However, the bulls’ jubilation was short-lived – the token began to decline rapidly, falling below its open level by the end of the day.
Amateur traders who managed to inflate the value of GameStop shares have chosen the cryptocurrency market as their next target. They created a telegram chat called “Buy and Hold XRP on February 1,” which had about 200 thousand participants.
On February 1 at 16:30 Moscow time, traders from this group promised to arrange a “pump” of the token. However, not all market participants were interested in supporting the XRP pump.
Having shown a slight increase at 16:30 Moscow time, that is, at the very minute when the users in the Telegram group agreed to buy the token, XRP plummeted, having lost 35% of the value within 10 minutes. In fact, the designated time turned out to be the moment for the dump, and not for the pump, writes ttrcoin.
“All speculative bursts usually end in the same way: a fall. In fact, such episodes only worsen the already controversial image of cryptocurrencies, highlighting the extreme speculative component of the price dynamics of the crypto market, ”the FxPro team of analysts notes.
“There is a certain pattern in these recent pumps. Doge, BTC and so on rise for about a day or less, after which they return to where they started, ”the trader Theta Seek, who successfully shorted XRP, shared his observations.
Twitter account Whale Alert noticed an operation to unblock 1 billion XRP on Ripple escrow wallets. This is the company’s standard procedure for withdrawing the reserves of a token issued by it.
Experts warned that large token holders could hinder the attempt to inflate quotes. For example, former Ripple CTO Jed McCaleb signed an agreement with her, according to which the number of tokens that he can sell directly depends on the daily trading volume of XRP.
The company itself can also increase the volume of token sales. Ripple depends on it as much as it does on other funding sources, and is unlikely to give up on the super-profits of a growing market.
A hearing in the Ripple Labs case is set for February 22. The future of the project depends much more on litigation with the SEC than on the success of the recent pump.
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