One coin has displayed unusual pricing behaviour that may have an upside for investors as the cryptocurrency sector continues to manage a mix of regulatory demands and market turbulence.
Investors in XRP yesterday noticed a strange phenomena, as the announcement of the publication of the Hinman Documents quickly increased the price of XRP. At first look, this could appear to be a standard example of market dynamics, but the rapid reaction that followed was very interesting. Significant selling volume immediately followed the price surge, which suggests that this manoeuvre was intentional.
The sudden selling pressure suggests that someone—or some people—were ready for this price pump. They set aside XRP monies that were prepared to be sold or “dumped,” perhaps to depress the price and keep some sort of market control. This suggests that there are organisations actively attempting to manipulate the price of XRP, perhaps for their own gain.
The possibility for this kind of behaviour to occur again is the main point of interest in this situation. A similar pattern might manifest when the announcement of the summary judgement on XRP approaches. The information, which will clarify XRP’s regulatory position, might result in another price increase. In that case, the same parties can make another attempt to lower the price by using their reserves.
The fascinating question is whether this suppression measure will be strong enough to combat demand if XRP receives regulatory certainty. Only time will be able to definitively answer that. The demand for XRP may skyrocket if it were to obtain a clear regulatory standing, outpacing any efforts at price repression.
Therefore, there may be a positive aspect to this odd pricing behaviour. In the event that the suppression efforts fall short of quelling the demand sparked by favourable regulatory news, XRP prices may sharply increase.
