XRP price glitch recently spiked XRP above the $5 psychological level on the multi-currency XRPL-based crypto wallet GateHub.
Amid the recent XRP breakout, prices appear to have spiked beyond the current position, reaching unprecedented levels on GateHub, a leading crypto wallet built atop the XRP Ledger.
XRP Price Crosses $5 on GateHub
Notably, the team behind the XRPL-based Shockwave crypto app first called the XRP community’s attention to this anomalous development. Specifically, they pointed out that the XRP price surged to a new peak of above $5 on GateHub, sharing screenshots to back up the claim.
An independent check carried out by The Crypto Basic confirms this disclosure. Interestingly, data from GateHub’s XRP/USD chart indicates that XRP indeed spiked to a peak of $5.5969 on July 17. This strange surge occurred at 14:40 UTC, and within the minute, XRP price immediately dropped to its normal range.
Broader market data indicates that this event was isolated to GateHub alone. Notably, while XRP price did observe an impressive 14.64% increase on July 17, its largest intraday gain in over four months, the peak value across the market that day stood at $3.55, much lower than the $5.59 top on GateHub.
What Happened?
Such a price would have marked a new all-time high for XRP, representing a 57% increase from its normal price range. Essentially, this kind of price spike can happen in two main ways, especially on a low-liquidity exchange.
First, if someone places a large market buy order, the system will automatically match it with the best available sell orders. On a thin order book, that means the price can quickly climb, even reaching levels like $5.59, simply because there aren’t enough sellers at lower prices to meet the demand.
Also, a spike can occur if someone lists XRP for sale at a high price on the order book and another trader, either accidentally or without checking the current market, agrees to buy at that level. In both cases, the exchange records the trade at $5.59 when the trade occurred, even though the global price remained around $3.5.
Further investigation shows that the market conditions on GateHub align with this theory. For instance, data shows that, currently, there are only $183,578 in XRP buy orders and $143,898 in XRP sell orders. This pales in comparison to the billions in global volume that XRP typically commands.
Similar Event on Gemini
Notably, while XRP has often observed cases of price glitch, especially on platforms like TradingView, the one case most similar to the recent GateHub event was what happened when U.S.-based crypto exchange Gemini listed XRP for the first time in August 2023.
For context, after Gemini listed XRP on the back of the token’s victory in the U.S. SEC case, several traders rushed to the platform while liquidity was still low. This condition set the stage for rapid price spikes and massive declines on the platform, with XRP price surging to $50 at some point.
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.
