Ripple is a protocol designed to increase the speed and reduce the costs of international monetary transfers. To protect the network, Ripple users must hold a small amount of the platform's native currency, known as XRP. In addition to preventing abuse and securing the network,…
Ripple is a protocol designed to increase the speed and reduce the costs of international monetary transfers. To protect the network, Ripple users must hold a small amount of the platform’s native currency, known as XRP. In addition to preventing abuse and securing the network, XRP serves as a bridge currency between any other currency within Ripple. Recently, the XRP price has surged–doubling its USD value in November alone. Ripple breached the 1 billion USD market cap range, but has since been dumped back to lower levels.
For most of November, the Ripple price remained fairly steady at ~$.0049 (unlike most altcoins, XRP’s largest trading pair is USD). However, the XRP price surged over the past week and a half.
On November 15, the XRP price was $.005. It slowly inclined over the next five days, reaching $.006 on November 20. But that was just the beginning of the XRP price increase. XRP reached $.0085 on November 23 and continued to increase throughout the next three days. At press time, the XRP price had passed the $.01 mark.
Ripple now has a market cap of more than $330 million. It ranks second among cryptocurrencies in total market cap with a comfortable ~$210 million edge on third-place litecoin.
There have not been any recent Ripple announcements to fuel this rapid XRP price increase. Consequently, this trend seems suspiciously like a pump and dump, where deep-pocketed traders (or trading groups) collude to raise a coin’s price. When other traders get caught up in the hype, the scheme’s orchestrator(s) dump their coins at a profit. This happens regularly in the altcoin markets, so novice traders should remain cautious. In any case, potential investors should expect traders who bought in early to cash out some of their gains in the near future.
Do you think the XRP price increase is part of a pump and dump trading scheme, or do you think investors are betting on Ripple’s future? Comment below!
Disclosure: The author is paid in and holds investments in bitcoin. He is not invested in or affiliated with any of the altcoins discussed in this article. Any advice contained in this article is solely the opinion of the author and does not reflect the views of CCN. Neither the author nor CCN is liable for your investing decisions, so do your homework and never invest more than you are willing to lose.
Images from Ripple and Shutterstock
Last modified: February 13, 2020 7:05 PM UTC