- XRP faces sharp price fluctuations, possibly influenced by wash trading.
- Binance’s alleged involvement in market manipulation raises concerns among XRP traders.
- Experts point to artificial volume spikes, triggering XRP price swings.
XRP traders have witnessed a troubling pattern over the past few days: a rapid price surge followed by a sharp decline. This sequence has led some to question whether these price movements are truly organic or if they’re driven by manipulation.
According to Vincent Van Code, a long-time market observer, the recent fluctuations could be tied to wash trading on the Binance exchange, a tactic that manipulates market prices without any real trading behind it.
Van Code explained that every time XRP experiences a fast pump, a massive sell-off follows. He believes this sell-off is engineered through wash trades, a technique where large players trade among themselves to create false volume and trigger the liquidation of stop-loss orders.
These trades primarily aim to clear out short positions, causing the price to drop further. Once the short positions are liquidated, the price typically rebounds, allowing the manipulators to profit from the volatility.
In this instance, a significant volume spike on Binance occurred within a short time frame. Van Code pointed out that such an extreme volume surge would not be seen under normal market conditions.
He noted that if this was driven by real retail volume, it would have been closer to a 41 million spike per hour. This discrepancy raises questions about whether the price movement was driven by retail traders or orchestrated by larger entities with control over the market.
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Evidence of Manipulation in XRP’s Price Action
Looking at XRP’s trading charts, the moving averages and volume patterns suggest that the market is being influenced by a few large players, rather than by natural retail interest. This behavior points to wash trading, where artificial price swings are created to manipulate the market for profit.
These tactics have led to concerns within the XRP community, with traders worrying that they are being caught in a market designed to benefit large actors at their expense. Without proper regulation, exchanges like Binance could continue to carry out these manipulative practices, leaving traders vulnerable.
As the XRP market faces growing concerns about manipulation, the need for greater transparency and regulation becomes more urgent. While some argue that such volatility is part of the crypto space’s inherent risk, the signs of manipulation remain troubling. Traders are left navigating a marketplace that seems controlled by a few powerful players, raising questions about fairness and the future of crypto markets.
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