February 1, 2021 | AtoZ Markets – According to CoinMarketCap, XRP price started to rise rapidly on Saturday. On the morning of January 30, the crypto asset was trading at $0.2866, but by the middle of the day, the price reached $0.5094. The growth continued on Sunday, and at the moment XRP is trading at $0.6338, showing an increase of 45% per day.
XRP Price Rally Coordinated By Telegram Groups
The price spike was likely initiated by members of a Telegram group called Buy & Hold XRP (t.me/pumpxrp), which surfaced on Saturday. Within the first 24 hours, the group’s membership exceeded 200,000, leading to the emergence of a second group (t.me/pumpxrpofficial).
The classic “pump and dump” tactic is not new to cryptocurrencies, especially XRP coin, which has a large number of investors. However, their recent actions may have been inspired by the GameStop network’s stock situation.
As a reminder, last week, users of the Reddit forum ” accelerated ” the price of GameStop stocks so that institutional traders suffered losses. Cryptocurrency industry participants supported the actions of traditional traders. WallStreetBets (WSB) token appeared on CoinMarketCap, taking the zero place ahead of BTC in terms of capitalization.
Recall that on December 22, the SEC filed a lawsuit against the company Ripple and two of its leaders – Brad Garlinghouse and Chris Larsen. The company is accused of selling $1.3 billion of unregistered securities, which are XRP coins.
Amid the lawsuit, many companies have stopped trading in pairs with XRP. In December, the rate of the crypto asset dropped significantly, however, the latest actions of traders have raised the price above the level recorded before the SEC lawsuit. How long XRP will remain at this level is anyone’s guess.
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