The XRP price rose to over $ 0.90 on the US cryptocurrency exchange Coinbase on November 24th only to fall back about 30% in seconds. This was the highest price level since May 2018.
The XRP surge was driven by Coinbase users
The increase was apparently driven by Coinbase users, as the price for XRP was not registered at the same level on other exchanges. Bitstamp and Binance, for example, hit a high of just $ 0.79 over the same period.
Shortly after the crash, the hashtag “Coinbase” started trending on Twitter. in the USA.
While Coinbase’s official status page currently states that everything is working normally, others sources show that the exchange actually has problems.
“HOW disgusting, new to Coinbase, and All of my XRP trades got suspended and didn’t finally show up until after the price dropped which resulted in me losing a ton of money!!! “wrote pseudonymous user Mike Palagi in one of the Down Detector comments.
What caused the accident?
The surge may have been triggered in late October if an anonymous whale shipping $ 50 million XRP at the time to Bitstamp. Since then, the XRP / USD has seen a strong parabolic uptrend.and rose 137% last week to its highest level in more than two years.
Before the price spike and the instant fall The popular trader under the pseudonym cryptoSqueeze observed that the XRP funding rate went negative. Said::
Negative financing of the XRPUSDT for FTX and OKeX. What could go wrong?
During the climb XRP funding rate for perpetual swap contracts for Binance remained at 0.01%. That meant that There was a balance between buyers and sellers as the price rose more than 35% in one day.
Although the brief print initially spearheaded the climb, sources who preferred not to be named told Cointelegraph so Some market makers at Coinbase withdrew their orders as the rally deepened.
Despite the current surge, XRP is still down 78% from its all-time high of January 2018. In terms of Bitcoin (BTC), however, XRP is down 83% from its all-time high Technical analysis suggests that the multiyear downtrend may have been broken last week.