Market Expert Shows XRP Crash to $1.76 Was Not Natural

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.

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.  

"The move yesterday was manipulated"

Let me explain my thoughts and why I was somewhat confident to call a low within 3 minutes last night (read until end)

Using $XRP for example

I think yesterday was a cohort effort of market makers to simultaneously let altcoins fall into… https://t.co/WOW4EB3QAE pic.twitter.com/y6ngsHrxl8

— Dom (@traderview2) February 3, 2025

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.

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.  

I'm sorry, I call BS, I mean these are the 30 mins charts for XRP, BTC and HBAR (SOL and XML also on there but not in this screen shot) on @binance

HOW CAN THEY LITERALLY BE IDENTICAL? You mean to tell me 5 separate tokens had the exact buying patterns, literally millions of… pic.twitter.com/3SVcMZ5kbn

— Vincent Van Code (@vincent_vancode) February 3, 2025

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.