Update: XRP tanks from 70 cents to just over 43 cents
The expression “the higher they rise the harder they fall” rings true after XRP fell as quickly and spectacularly as it went it up.
After reaching a high of $.0.744, the digital asset nosedived to $0.44 within six hours.
However, it should be noted that the token fell from around 75 cents to 59 cents in less than 30 minutes, and within 3 hours, the token had dropped to a low of $0.40. It has been trying to climb back.
The token’s rise was pure pump initiated in Telegram groups and a few Reddit forums. However, this price action mimics a price and dump action similar to that of GameStop shares that followed a similar trajectory.
On Jan. 28, GameStop (GME) shares traded at $464, and in less than 5 hours, the price had fallen to $130.
The price of the gaming firm had disconnected from the fundamentals and its surge was inflated by members of the WallStreetBets forum.
This is the same thing that has happened with XRP. It was pumped by members in groups on a few platforms, chiefly Telegram. The dump could be in.
The dump has seen XRP fall into the fourth spot after its market cap dropped from $32 billion to $19.8 billion.
XRP has reclaimed its third-sport in market cap rankings thanks to a surge of more than 100% in 48 hours.
The embattled token, whose descend began when its affiliated company Ripple was sued by SEC in December 2020, seems to be the beneficiary of a coordinated buying attack by retail traders concentrated in Reddit chatrooms and Telegram groups.
XRP reaches a two-month high
At the time of writing, the token was trading at $0.7001 at Bitstamp exchange, TradingView data shows.
This is the token’s highest price in two months after it last reached this trading range in late November last year.
The token was trading under $0.30 on Jan. 30 before groups in Reddit and Telegram channels focused their attention on the digital asset and decided to pump it.
XRP climbed to a high of nearly $0.50 on the same day but surrendered the gains as it plunged to a low of $0.36 within a few hours.
It picked steam since then and has rallied to its current price as retail buying pressure continues.
CoinMarketCap data shows that XRP has a market of $32.1 billion and has overtaken the stablecoin Tether ($26.6 billion) to take back the third spot.
Reddit and Telegram’s role
A Reddit forum – r/SatoshiStreetBets – seems to have taken an interest in XRP and want to pump it.
The current interest of retail investors to coordinate buying attacks on tokens is spilling into Telegram channels that are encouraging members to buy and hold tokens.
A Telegram group with more than 100,000 members see XRP as a cryptocurrency to buy.
Cryptonary recently wrote that the XRP token rallied more than 50% as a result of a Telegram group pump.
Where to from here
Perhaps the biggest question is whether the retail buying pressure is strong enough to sustain the upward trend.
Dogecoin, a meme-themed cryptocurrency that has turned out to be Elon Musk’s favorite cryptocurrency, was pumped to a high of $0.077 before crashing 49% to its current price of $.03918.
Even then, Dogecoin is still trading much higher than it did before the pump began.
One user on r/SatoshiStreetBets wrote “return to DOGE when done with XRP profits! HODL both.”
The members seem to be encouraging each other to hold the tokens and others are suggesting pumping Stellar (XLM) next.
Do the retail traders have enough capital to keep on pumping tokens? For now, they have shown that they have the will and organization to do so.