XRP has had a huge run-up but has now abruptly reversed course. What may be the cause of this unexpected turn of events? Let’s examine the facts in detail to find out.
Price Analysis: Roller coaster week for XRP
XRP’s price has changed dramatically during the last seven days. The asset had a good start to the week, with encouraging signals of breaking past significant resistance levels. The asset reversed its gains nearly as fast as it achieved them, so the euphoria was fleeting. This type of pricing behaviour frequently causes investors to scratch their heads and search for possible reasons.
Transaction metrics: Surge in activity
The spike in network activity is one of the most fascinating features of XRP’s recent price performance. The network reportedly added about 60,000 additional transactions on August 30. This high spike may be an indication of increased trading activity or perhaps speculative behaviour because it is so substantial.
New accounts and rolling selling
Another interesting development is the unexpected rise of new XRP network accounts that got plenty of transactions. A fan-like selling pattern on centralised exchanges may be to blame for this. This type of activity frequently hints at “whale” behaviour in the cryptocurrency realm, when significant holders of an asset manipulate the market by making sizable trades.
Whales at play?
It thus begs the question: Did whales influence the XRP market to prevent it from achieving a new price threshold? Although it is challenging to be certain, the data does indicate that significant holdings may have contributed to the asset’s swift retrace. It’s possible that a coordinated attempt was made to affect the price as evidenced by the spike in transactions and the opening of new accounts that received several transactions.
