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HomeCrypto NewsMarketMarket Expert Shows XRP Crash to $1.76 Was Not Natural

Market Expert Shows XRP Crash to $1.76 Was Not Natural

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A market expert identifies what triggered the latest XRP crash, suggesting the market dynamics were not particularly natural.

The crypto market recently experienced a sharp downturn, triggered by fears of a potential trade war. For context, President Donald Trump announced higher tariffs on imports from China, Mexico, and Canada, triggering concerns of economic retaliation. 

This uncertainty caused a market-wide crash, with Bitcoin falling below $100,000 to the $91,000 mark and XRP dropping under $3 for the first time since mid-January.

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However, the most shocking development was XRP’s dramatic price movement on Monday, Feb. 3. Notably, within three hours, XRP plummeted from $2.57 to a new yearly low of $1.76, marking a 31% decline. Almost immediately, the asset rebounded above $2, leading to speculation about market manipulation.  

XRP Market Dynamics Were Not Natural

Dom, an expert in order books, examined the sudden drop and suggested that the dynamics behind it were not natural. He explained that market makers likely played a major role by collectively removing buy-side liquidity. The coordinated effort allowed altcoins like XRP to drop drastically before select players placed bids at lower prices.  

According to Dom, the initial phase of the price decline seemed normal. However, the final moments were unusual, as order books became empty. The absence of buy orders showed that major buyers had intentionally stepped back, letting prices fall. 

He highlighted that some major traders placed specific bids at a time when XRP was still above $3, and this raised questions about whether these traders expected a crash and positioned themselves to profit from it.

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Dom noted that once the market filled these bids, XRP rebounded. He suggested that the same entities responsible for the crash likely benefited from the recovery. When others suggested that this was not market manipulation, Dom agreed but maintained that it was not natural.

Unusual Trading Patterns Across Multiple Assets  

Meanwhile, another analyst, Vincent Van Code, pointed out a strange similarity in the price movements of multiple crypto assets, including XRP, Bitcoin, and HBAR. He shared 30-minute charts and observed that the patterns across these assets were nearly identical.  

Van Code wondered how five different tokens could exhibit the same buying and selling behavior at the same time. Accordingly, the analyst suggested that such a scenario would be statistically improbable unless influenced by coordinated market activity. 

Interestingly, it appears this trend occurred across multiple exchanges, and not just Binance. However, the only exception was the XRP Ledger’s native decentralized exchange, which displayed a unique price pattern.  

When asked about Van Code’s findings, Dom acknowledged that such similar price movements across major assets can be normal as algorithmic trading plays a role in all financial markets. Notably, he agreed that market-making algorithms often operate in sync, especially in low-liquidity altcoin markets.  

Currently, XRP is battling to recover the recent losses, having rebounded from under $2 yesterday. XRP currently changes hands at $2.48, holding firm above $2 despite fresh bearish pressure this morning.

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.

Author

Sam Wisdom Raphael
Sam Wisdom Raphael
Sam Wisdom Raphael is a seasoned crypto news writer and journalist with 5 years of experience covering blockchain, DeFi, and crypto developments. Sam's active presence in the crypto community complements his deep understanding of the crypto space, allowing him to craft comprehensible price analysis reports and tackle technical blockchain concepts.

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