TL;DR Breakdown
- XRP price reached the $0.7471 mark, making an all-time high since 2017.
- The upsurge is linked to a group of inexperienced followers of the asset.
- Speculators are hoping the rally will continue.
In a release by CoinDesk 20 in December, XRP rose to hit $0.50944. However, following an action filed by the SEC against Ripple, a blockchain company, and two of its significant stakeholders, the price of the asset dropped to a level around $0.20 in the same month. However, the crypto market saw a strong upswing by the native token of Ripple this Monday when the price hit past the $0.70 mark.
What caused the XRP price boom?
XRP price saw a leap following the activities of a group called “Buy & Hold XRP” on Telegram. Just a few hours after the group was formed, it exceeded the Telegram group limit and another one was created shortly after.
The group’s initial plan was to pump the token on February 1 at 08:30 EST. However, the price of the cryptocurrency started its rally during the late hours of January. As a result, the price of the asset rose above $0.70 to make a significant high since 2017.
In a conversation between Cryptodesk and Jehan Chu, co-founder and managing partner at Hong Kong-based Kenetic Capital, he claimed “Traditional Crypto-Pump groups are being copied and legitimized by WallStreetBets-style crowd-pumps, and are now turning their burning gaze from dogecoin to XRP.”
This pump and dump approach is not unfamiliar to the crypto world. However, another theory is that the rise in price of the token must have been caused by a group of inexperienced traders present on the Telegram group.
The upswing led to XRP reversing the loss that trailed the SEC lawsuit incident. If these crypto enthusiasts are really true to their words, it will remain as a worthwhile move for the cryptocurrency.
