Some analysts in the crypto industry say that the current price of XRP is unsustainable.
WallStreetBets traders appear to be in no mood to leave the headlines anytime soon as they have continued to hug the media attention, especially with their latest interest in the crypto industry. This group of traders had played an active role in pushing GameStop’s shares into unprecedented heights before the forced regulations of trading platforms. However, to circumvent this intermediary, WallStreetBets traders have taken an interest in the crypto market, and their latest focus is XRP after they had helped push the “meme” coin DOGE into the top 10 rankings of crypto assets by market cap and also pushing the value of the digital coin to rise by almost 1000%.
Dogecoin saw its price rapidly drop in the last 48 hours as the interest of the traders changed to the token widely used the embattled crypto payment processing company Ripple Labs. According to available information, the token price had risen by 86% on January 30 before increasing again by 56% in the last 24 hours. Presently, the asset is trading at $0.66, which shows an increase of over 140% in the last week.
The market cap of the asset has also pushed it above Tether. It now sits as the 3rd largest crypto asset based on a market cap of over $30 billion. Not only that, the pump in its price also coincided with a jump in the numbers of its social media mention, according to data from The Tie.
A Telegram Group called “Buy & Hold XRP” has been fingered to be responsible for the current upsurge in Ripple’s token value. The group came into existence on January 30, and the bull run of XRP started around then. It is also worthy to note that the group currently has over 200,000 members in its group already.
Jehan Chu of Kenetic Capital said these traditional crypto-pump groups are now being copied and legitimized by WallStreetBets styled action. Their interest has, however, shifted from Dogecoin to XRP.
Another crypto asset that has also seen an upsurge like that of XRP is Stellar. Stellar’s XLM rose by over 60% in one market day, with the asset’s price reaching as high as $0.38 before it dropped to its current value of $0.34.
Analysts Say XRP Price Rise Caused by WallStreetBets Push Is Unsustainable
Some analysts in the crypto industry say that the current price of XRP is unsustainable, especially when one considers that Ripple is preparing to face a lawsuit filed against it by the Securities and Exchange Commission (SEC).
According to Glen Goodman, there is the possibility of the crowd pushing the price of the asset higher; however, the moment interest is lost in the asset, the price would come tumbling again. Alex Krüger thinks that the asset’s value might not get to the highs of Dogecoin because it is harder to move and because of its large market cap.
Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.
