- Analyst Stellar Rippler claims XRP’s recent spike and sharp reversal may have been driven by alleged wash trading on Binance.
- The move reportedly pushed XRP to around $1.67 before a large sell-off triggered liquidations.
- The episode raises broader concerns about market structure and transparency.
A recent market move involving XRP has sparked debate after analyst and crypto commentator Stellar Rippler alleged that the sharp price swing may have been driven by wash trading activity on Binance. The claims come after a sudden surge and rapid reversal in XRP’s price, which the analyst argues bears the hallmarks of exchange-driven volatility rather than organic market demand.
What Is Wash Trading and Why It Matters
Wash trading refers to a practice where the same entity acts as both buyer and seller, creating artificial trading volume without genuine market participation. According to Stellar Rippler, centralized exchanges may use internal market-making desks alongside leveraged derivatives to generate volatility, a key source of revenue through trading fees and liquidation spreads.
In this framework, exchanges may benefit not from price direction but from the level of market activity itself. Increased volatility encourages more trading, which in turn generates higher fees. The analyst warned that retail traders often interpret such artificial volume as real demand, leading them to enter positions during sudden price spikes.
Market Conditions That Can Amplify Artificial Moves
Stellar Rippler noted that certain market environments make it easier for large players to influence price action. These include periods of low liquidity, when prices can be moved with relatively little capital, and moments when assets approach key technical levels such as breakout zones, resistance areas, or major liquidation clusters.
The risks are also higher when leverage in the market is elevated. In such conditions, even a modest move can trigger a chain reaction of forced liquidations. The analyst also pointed to hype-driven periods or weekend trading sessions, when thinner participation may allow sharp moves that are later reversed.
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The XRP Move That Raised Concerns
According to the analysis, XRP was rapidly pushed higher on Binance to around $1.67, a move that may have triggered fear-of-missing-out buying and leveraged long entries from retail traders.
At the peak, a large sell wave of approximately 40 million XRP reportedly entered the market. The sudden surge in selling pressure caused volume to spike and triggered cascading liquidations across leveraged positions. As traders were forced out of the market, volatility intensified, generating significant fee activity tied to liquidations and rapid position turnover.
WHAT THE HELL IS WASH TRADING THAT JUST HAPPENED WITH XRP?!
If You Are Into Crypto, You Better Know The Biggest Manipulation Trick Centralized Exchanges Use To Rip-Off The Retail 👇
Wash trading is when a same entity(like Binance) is both buyer and seller, creating fake volume… pic.twitter.com/51PRaPXMeE
— Stellar Rippler🚀 (@StellarNews007) February 18, 2026
Moreover, Rippler also raised broader concerns about trading activity involving USDT, which consistently records the highest daily trading volume in the crypto market.
Stellar Rippler argued that daily turnover representing a large percentage of USDT’s circulating supply suggests repeated back-and-forth trading rather than purely organic demand. According to the analysis, such high turnover levels could point to structural market activity designed to maintain liquidity and volume rather than reflecting new capital entering the ecosystem.
Regulation and Transparency Debate
His analysis extended to potential regulatory developments, particularly the proposed CLARITY Act, which aims to introduce stronger transparency requirements for digital asset markets.
Supporters of stricter oversight argue that enhanced reporting standards could reduce opaque trading practices and improve price discovery. However, tighter regulation may face resistance from industry participants who rely heavily on high-frequency trading activity and derivatives-driven volume.
A Cautionary Moment for Traders
While the allegations have generated attention within the XRP community, there has been no official confirmation from Binance or independent verification of the specific events described.
Market observers note that sharp price swings in cryptocurrency markets often result from a combination of factors, including leveraged positioning, thin order books, algorithmic trading, and broader sentiment shifts.
Regardless of the cause, the episode underscores a key reality of the crypto market: volatility can be driven as much by market structure as by fundamentals. For traders, the event serves as a reminder to approach sudden price surges with caution and to remain aware of the risks associated with highly leveraged and rapidly moving markets.
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