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?
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?
To keep track of DeFi updates in real time, check out our DeFi news feed Here.
Source Click Here coingape
Another source Below
There are no boring days on the cryptocurrency market, and that’s particularly true for this week. After the GameStop saga, Dogecoin’s pump, and Elon Musk putting Bitcoin in his bio, it appears that it’s now XRP’s time to shine.
- The price for Ripple’s native cryptocurrency, XRP, has increased by as much as 80% in a few short hours. Less than 12 hours ago, the coin was trading at around $0.28 but has since surged to an intraday high of $0.51 for an increase of about 80%.
- The price has since corrected to where it’s currently trading at.
- This comes on the day when Ripple sent its response to the United States Securities and Exchange Commission.
- As CryptoPotato reported earlier in December, the watchdog has filed a lawsuit against Ripple for conducting an unregistered sale of securities, implying that XRP is not a currency or a commodity, but rather security.
- The price has since plummeted, but today it seems to be attempting a recovery.
- As part of its defense, the company says that:
“In 2015 and again in 2020, the US Department of Justice (DOJ) and US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) determined that XRP is lawfully used and traded in the marketplace as a virtual currency. Those determinations are consistent with the economic reality that XRP functions as a store of value, a medium of exchange, and a unit of account – not a share in Ripple’s profit.”
- In any case, the current surge has also led to the liquidation of more than $84 million worth of short and long positions on XRP across the major exchanges in the past hour alone.