Ripple is back at the center of the cryptocurrency community after a group of redditors responsible for pumping failed stocks from GameStop and AMC Corporations decided to orchestrate the same buying spree on the blockchain company’s native token XRP.
Over the past four days, the XRP / USD exchange rate rose from $ 0.23 to $ 0.77 – a 228 percent rally. The couple’s gains made the XRP’s market cap at one point $ 32 billion, making it the fourth most important cryptocurrency in space.
The ripple is waiting to be corrected after pumping 228 percent in four days. Source: XRPUSD on TradingView.comRipple awaits correction after pumping 228 percent in four days. Source: XRPUSD on TradingView.com
As of Monday, the Ripple token corrected lower, led by profit-taking. The price versus the dollar fell 22.42 percent during the Asian and European sessions, leaving exposed traders two options: either buy back at the local lows or exit altogether after securing remaining profits.
/ r / WallStreetBets warning
What has worked in Ripple’s favor isn’t a fundamental foundation, but WallStreetBets, a Reddit group set out to put wealthy hedge funds into losses. Her recent $ 43 trillion stint in the U.S. stock market matched the stocks with the most short positions, forcing Melvin Capital to close out its bearish positions, wiping out more than 53 percent of the capital.
The cryptocurrency community, known for its anti-establishment views on global finance, has seen WallStreetBets as their lead to orchestrate similar mob-led bullish frenzies.
Dogecoin, a meme cryptocurrency that has virtually no reason to exist other than joking about the crypto sector, rose more than 1,100 percent in a copycat rally. Even so, the price plummeted as much as 79 percent from its last high of $ 0.01.
Dogecoin is consolidating in a volatile oscillating range after its supersonic pump and dump. Source: DOGEUSD on TradingView.comDogecoin is consolidating in a volatile swing area after its supersonic pump and dump. Source: DOGEUSD on TradingView.com
The joke mark still hasn’t given up on its bullish dreams. After hitting a low near USD 0.02 on Saturday, it corrected itself back up more than 100 percent. It is now consolidating sideways – just like XRP – and its traders are deciding whether to pump it higher or lower.
But the Ripple token can still be seen, its red candle. Just unlike Dogecoin, there is some bullish news to continue its upward moves.
For a minor background, the San Francisco firm is facing a lawsuit filed against it by the Securities and Exchange Commission. The U.S. Securities and Exchange Commission said in December that Ripple Labs, its CEO Brad Garlinghouse and co-founder Christian Larsen had sold over 14.9 billion unregistered XRP units for approximately $ 1.38 billion .
XRP / USD lost half of its value after filing the court, and many top exchanges, including Coinbase and Binance, decided to delist it until further notice.
On Jan. 29, Ripple Labs officially responded to the SEC complaint, alleging that regulators were outside their jurisdiction, as the U.S. Department of Justice and the Financial Crimes Enforcement Network (FinCEN) had already confirmed that XRP is not a security.
“Basically, on its way out, the Trump administration was trying to reverse the finding that XRP was a virtual currency made during the Obama administration,” the company added.
While the verdict is still unclear, the reaction may have helped fuel the Ripple rally. The token remains overbought on all accounts and could risk a technical correction. Analyst Michaël van de Poppe believes the next buying opportunity is to trade in the $ 0.45-0.50 range, but the risk of craving for XRP remains higher.
“Avoid chasing pumps dog and XRP, ”he added. “Determine the levels you may want to get into a scalp trade to reduce your potential risk.”