XRP share price increased to $0.90 Collapse within seconds after Coinbase failure
The XRP price on Coinbase rose to as high as $0.92 and then plummeted again by 30 percent in a matter of seconds.
On November 24, the XRP price rose to over $0.90 on the US crypto currency exchange Coinbase. Shortly thereafter it fell again by about 30 percent. This was the highest price since May 2018.
XRP madness: Are Coinbase users behind it?
Apparently the rally was driven by Coinbase users, as the XRP price by Financial Peak did not rise as high at other exchanges. Bitstamp and Binance only reached a high of just $0.79.
Shortly after the crash, the hashtag „Coinbase“ on Twitter became very popular in the United States.
On the official status page of Coinbase it says at the moment that everything is working normally. Other sources say that the stock market is in reality having problems.
„SO A MIST – I’m new to Coinbase and all my XRP trades went nowhere and only showed up AFTER the bottom was reached. I lost a lot of money because of this“, said user Mike Palagi in one of the comments on Downdetector.
What caused the crash?
The rally may have been triggered in late October when an anonymous whale sent $50 million worth of XRP to Bitstamp at the time. Since then, the XRP/USD pair has experienced a strong parabolic upward trend. Last week it rose 137 percent to its highest level in over two years.
Prior to the price rise and immediate fall, the popular trader cryptoSqueeze noted that the funding rate for XRP became negative. He said:
Negative funding rate for XRPUSDT on FTX and OKeX. What can go wrong?“
Throughout the rally, the funding rate for XRP perpetual swaps on Binance remained at 0.01 percent. This means there was a balance between buyers and sellers when the price rose over 35 percent in one day.
Although the crowding out of short positions drove this rally, anonymous sources told Cointelegraph that some market makers on Coinbase withdrew their orders when the rally overheated.
Despite the current rally, the XRP is still 78 percent below its all-time high in January 2018, and in Bitcoin (BTC) the XRP is 83 percent below its all-time high. However, technical analysis suggests that the multi-year downtrend may have stopped last week.