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HomeCrypto NewsMarketXRP Reaction to Bullish News Sparks Debate

XRP Reaction to Bullish News Sparks Debate

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Two pundits recently discussed the correlation between XRP price actions and bullish news, which sheds light on the coin’s growth rate relative to its peers.

The debate was sparked by on-chain sleuth Mr Huber (@Leerzeit), who called the XRP community’s attention to the fall in the price of Stellar (XLM) following the implementation of the AMM feature.

Notably, the Stellar network witnessed the implementation of Protocol 18 in November 2021, which ushered in an AMM feature. However, XLM collapsed 83% over a year after the feature went live.

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Mr. Huber noted that he expects the price of XRP to follow the same path as XLM when the AMM feature is fully operational.

Popular crypto analyst Dark Defender countered these claims. He argued that the price of XRP typically does react to major news.

Claims and Counterclaims on XRP Growth

According to Dark Defender, despite filing the SEC lawsuit in 2020, an event considered bad news, the price of XRP still moved from $0.17 to $1.99. When the good news about the victory came in July last year, XRP moved mildly from $0.50 to $0.91. 

Dark Defender also pointed out a trend in 2017 when no major news was recorded: the coin jumped from $0.002 to an All-Time High (ATH) of $3.84.

However, Mr Huber had a different take on these growth claims, as he noted that Dark Defender was comparing different time periods and types of news.

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He believed the 2020 SEC lawsuit had an impact, as the price tanked by 80% in three weeks. He pointed out that following that dip, XRP never traded at the high of 2021, more than in 2018.

Commenting on the lawsuit victory, Mr. Huber noted that the news had an impact for a few days before the coin suffered a correction back to the price level before the news broke.

The on-chain Sleuth also highlighted how the rally of 2017 was triggered by the news of Ripple Labs’ implementation of escrow. To sum up his argument, Mr. Huber noted that XRP is best described as a hedge against deflation.

Timeframes Consideration

To solidify his position, Dark Defender said in follow-up posts that timeframes matter in price discourse. He highlighted that XRP cleared the deficit in 8 weeks despite the 80% slump in 2020 following the lawsuit. XRP went on to soar “1175% after the lawsuit dip while the lawsuit was ongoing.”

He countered the other claims raised as well, underscoring how XRP finds its balance in 8-week periods after a negative price event. Overall, he noted that the escrow claims cannot also be good news as they generally inflate the coin’s supply.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Godfrey Benjamin
Godfrey Benjaminhttps://thecryptobasic.com/
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web3.0. His love for crypto was birthed when as a former banker, he discovered the obvious advantaged of decentralized money over traditional payments. With his vast experience covering different aspects of Web3, Godfrey's articles has been featured on Blockchain News, Cryptonews Com, and Coingape amongst others. When not writing contents related to crypto, you can find him playing video games.

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