XRP rebounded strongly on Saturday, in a move similar to a sudden increase seen recently in underprivileged stocks, such as GameStop.
The cryptocurrency jumped 56% to $ 0.50944, reaching the highest level since December 22, according to data from CoinDesk 20. This was the largest percentage gain in a single day since December 21, 2017.
The double-digit price increase was probably fueled by members of a Telegram-based group called Buy & Hold XRP (t.me/pumpxrp), which began to exist on Saturday. The group’s membership reached the ceiling of 200,000 Telegram in the first 24 hours, forcing a migration to a new official channel with a similar title, but a different link (t.me/pumpxrpofficial).
“Traditional Crypto-Pump groups are being copied and legitimized by crowd-pump in the style of WallStreetBets, and are now turning their fiery dogecoin gaze to XRP,” said Jehan Chu, co-founder and managing partner of Kenetic Capital, of Hong Kong. CoinDesk.
The classic pumping and dumping tactics are not new to cryptography, especially for XRP, which has a strong army of followers. However, his morale may have been boosted by a group of amateur day traders based on a Reddit forum called WallStreetBets, which recently launched a coordinated buying attack on video game retailer Gamestop, unleashing a small squeeze and inflicting heavy losses on funds. hedge
GameStop (GME), a short-range target, increased nearly 400% last week, extending the previous week’s 83% increase and attracting unwanted attention from regulators. Meanwhile, the meme-based cryptocurrency rose 800% a day before the XRP price bomb. The data suggests that mass buying tactics are returning to their territory, having democratized legacy markets.
It remains to be seen whether members of the Buy & Hold XRP group remain loyal to the group’s title while maintaining the cryptocurrency.
So far, XRP is changing hands close to $ 0.45. The price increase erased a significant part of the $ 0.55 to $ 0.20 drop observed after the US Securities and Exchange Commission filed a lawsuit against Ripple Labs in late December.