The XRP has plummeted since the two-month highs reached on Monday, with a planned community buying effort failing to produce the desired results.
The cryptocurrency is trading close to $ 0.42 at the time of analysis – 40% below the $ 0.75 high reached around 11:10 UTC, according to data from CoinDesk 20.
A buying effort coordinated by around 200,000 members of the two-day Telegram group called “Buy & Hold XRP” at 8:30 am EST should take cryptocurrency to higher levels of resistance. Instead, the XRP retreated from $ 0.75 to $ 0.60 before the crowd bought and extended the losses to $ 0.40 after 8:30 am EST.
The cryptocurrency almost doubled in value over the weekend and hit two-month highs this morning. The price action suggests that some traders bought XRP in anticipation of a price bomb, inadvertently pushing it up. Some of them may now be stuck on the wrong side of the market.
So far, the exact reason for the price eviction is not known. It is quite possible that a whale (large investor) took advantage of the price increase and disposed of its stakes. Pumping and dumping strategies are not new to the crypto markets, especially for XRP.
A Reddit post, which talked about a crowd buying attack at 8:30 am and how it could succeed, was removed by Ripple moderators. The Telegram group, however, remains active, where members blame currency stops for the price drop.