XRP Price Rollercoaster: From $0.90 Glory to Sudden Crash

Overview of the XRP Surge

On November 24, cryptocurrency enthusiasts felt the thrill of a lifetime as XRP prices witnessed a meteoric rise to over $0.90 on Coinbase. This surge marked the highest price level since May 2018, igniting excitement similar to finding a hidden stash of candy at the bottom of a trick-or-treat bag.

The Coinbase Effect

The XRP frenzy was primarily fueled by users on Coinbase, with other exchanges such as Bitstamp and Binance reporting lower peaks—around $0.79 during the same timeframe. It’s like everyone wanted to jump on the bandwagon, yet only a select few made it to the front seat.

Social Media Buzz

Not surprisingly, chaos reigned on social media shortly after the price crash. The hashtag “Coinbase” began trending across Twitter in the U.S., with users venting their frustrations faster than you could say “blockchain.”

Service Interruptions

Although Coinbase assured users that operations were normal, a chorus of complaints indicated otherwise. One disgruntled user lamented, “WHAT CRAP — new to Coinbase — and all my XRP trades went into limbo and finally showed up only AFTER the bottom fell out — causing me to lose a ton of money!!!” It seems that the only thing moving faster than XRP was the decline of user confidence in the platform.

Triggering the Price Movement

Rumors suggest that the price rally was kicked off in late October when a mysterious whale transferred a whopping $50 million worth of XRP to Bitstamp. This initial surge led to a parabolic increase, with XRP/USD seeing growth of 137% in just a week.

Market Movements

Before the dramatic spike and subsequent crash, CryptoSqueeze, a well-known pseudonymous trader, placed the funding rate under a microscope. He remarked, “Negative funding on XRPUSDT on FTX and OKeX. What could go wrong?” This sentiment turned out to be eerily prophetic.

Market Makers and Funny Business

Throughout the tumultuous rally, the funding rate for the XRP perpetual swap contract on Binance hovered around a steady 0.01%. This balmy rate suggested a nearly equal tug-of-war between buyers and sellers as XRP’s dramatic 35% price surge unfolded in a single day. Yet, whispers of market makers pulling orders as things got too hot for comfort hinted at possible shenanigans in the trading arena.