XRP Price Shots Up by 70% Breaking $0.5, Pump-Dump Or Rise in Demand?

By Prashant Jha and Sunil Sharma
Published January 30, 2021 Updated January 30, 2021
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XRP Price Shots Up by 70% Breaking $0.5, Pump-Dump Or Rise in Demand?

By Prashant Jha and Sunil Sharma
Published January 30, 2021 Updated January 30, 2021

XRP Price has pumped over 70% in the last hour, taking its price from $0.28 to near $0.5 mark for the first time since the SEC filed a lawsuit against Ripple. The price rise is suspected to be a pump driven by a Telegram group, helping the altcoin to finally overcome the $0.30 price barrier.

Is this Rise in XRP price a Pump-Dump?

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Many in the crypto-verse raised suspicion about possible news with no other reason in sight for the pump.  TRON (TRX) rose quite similar to XRP yesterday owing to the similar pump owing to another Telegram group.

The frenzy about pumping small stocks began with GameStop when a Reddit group shot squeezed the GME stock to rise above $450.

Justin Sun, the founder of the Tron group took to Twitter to announce that he would buy 1 million GME stock followed by a pump in TRX price. Later it was revealed that thr pump was artificially created by a Telegram group probably trying to emulate the wallstreetbets, the Reddit group behind GME stock pump.

TRX rose over 42% during the pump before losing nearly all its gains within an hour of the rise. Many warned people to not rush into buying XRP looking at the price while XRP fans called it a natural pump owing to Ripple’s official rebuttal to the SEC lawsuit in a court filing.

The short squeeze trend is now being used by Telegram groups to pump the price followed by a dump. This, many have warned against investing in such crypto assets that are being pumped artificially.

Though many known traders are defending the XRP price rise, the crypto community seems to be divided into two groups. Many known crypto traders are defending the XRP price as much awaited jump rather than a planned pump.

What do you think, is this a planned pump?

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
1004 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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