/https://specials-images.forbesimg.com/imageserve/60168600522b0eb7c40bf660/0x0.jpg "After Massive Dogecoin Crash, Ripple’s XRP suddenly skyrocketed WallStreetBets’ price increase")
Ripple’s XRP, currently the world’s fourth largest cryptocurrency measured by CoinMarketCap, suddenly jumped higher in a wave driven by WallStreetBets traders.
XRP, a digital token created by San Francisco-based company Ripple, added more than 50% to its price in the past 24 hours, rising after dogecoin, an ironic “joke” bitcoin rival named Elon Musk as his “fav” cryptocurrency , broke – losing more than half of his recent earnings.
Ripple’s XRP is the second cryptocurrency to pump suddenly this week, after dogecoin’s huge meme-powered rally sent its price almost 1,000% higher (although there was speculation that bitcoin could emulate GameStop’s recent short squeeze) .
Ripple’s XRP, one of the top five cryptocurrencies, suddenly burst – adding more than 50% to its value … [+]
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Dogecoin and XRP emerged this week with retailers organized through Reddit’s WallStreetBets forum and groups on Telegram and Discord teaming up to “pump and dispose” of digital tokens.
Members of a Telegram group that has more than 100,000 people have named XRP as a cryptocurrency to buy.
“Focus on XRP”, wrote a member of the Telegram group. “Please buy and hold.”
Traders have turned to cryptocurrencies this week after a long battle between upbeat retailers organized via Reddit’s WallStreetBets and Wall Street hedge funds that have long been selling GameStop stocks have reached their climax – with regulators and brokers trying to calm markets frantic with heavy restrictions.
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The price of bitcoin, after dropping to less than $ 30,000 per bitcoin this week, suddenly jumped 20% higher after Musk changed his Twitter bio to “#bitcoin” and published: “In retrospect, it was inevitable.”
The price of Ripple’s XRP has skyrocketed around 50% in the past 24 hours, as organized traders pile up … [+]
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However, despite the XRP’s more than 50% rise, traders don’t think it will achieve the kind of short-term gains seen by dogecoin – although it might have more to run before its peak.
“Buying XRP at these prices, while your future is at stake, is a pure bet,” veteran trader and author of The Crypto Trader, Glen Goodman, said via Twitter DM. “The WallStreetBets crowd could easily push much higher, but the moment they lose interest and move on to a different target, the price is sure to fall again.”
“I don’t expect the XRP bomb to be as big as the dogecoin bomb this week, although it will end with an explosion,” said the cryptocurrency economist and trader. Alex Krüger, speaking via Telegram. “XRP is more difficult to move as it has a much higher market capitalization than dogecoin, but I assume they could take you up to $ 0.75- $ 1.00.”
Krüger also warned that, unlike GameStop, “there are no hedge funds that short sell doge, so it is not liquidated hedge funds that provide outgoing liquidity, but latecomers who are holding the bag” adding: “How many ‘investors’ in doge stocks will realize that they fell into one of the biggest bombs and dumps in history?”