- XRP drop raises institutional manipulation speculation through strategic market flows.
- Large XRP transfers to exchanges trigger volatility, resetting leverage positions.
- XRP trades at $1.87, reflecting slight recovery after institutional shakeup.
On December 26, XRP witnessed a sharp price drop that left many traders and investors scratching their heads. While some believed the dip was due to panic selling or retail capitulation, market expert Chain Cartel argues that the real cause lies in institutional manipulation of the market.
According to analyst Chain Cartel, this sudden drop was not driven by market sentiment, but rather by the strategic actions of large institutional players taking advantage of thin liquidity.
Chain Cartel points out that the dramatic price movement was not caused by retail investors acting out of fear. Instead, large transfers of XRP were observed hitting exchange venues within a short time frame. This synchronized movement, according to the expert, follows a well-known pattern of market manipulation, seen in previous instances of volatility events in the past.
Institutional Moves Behind XRP’s Price Drop
XRP doesn’t require hours of selling to create significant price changes. A short burst of supply, especially when the order books are thin and leverage is positioned incorrectly, is enough to cause a rapid price drop. The transfers on December 26 weren’t just a random occurrence; they were part of a deliberate strategy by institutional players who were likely aiming to manage inventory, induce volatility, or reset leverage positions.
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Large institutional players move the market to their advantage, especially when liquidity is low. Chain Cartel emphasizes that these entities don’t trade the market that traders wish existed; they trade the available market, exploiting its weaknesses. The expert further highlights that coins don’t get sent to exchanges for “sightseeing.” Instead, they are sent to be sold, recycled, or used to adjust positions in the market.
Manipulation of XRP’s Price: A Familiar Strategy
The price drop on December 26, which the coin is still struggling to recover from, is just another example of the predatory strategies used by institutional players in the XRP market. Chain Cartel explains that this approach has been used for years: pushing the price down quickly to trigger liquidations, and then quietly refilling positions once the market recovers. This practice, known as “stop hunting,” is designed to reset leverage and reload positions at more favorable prices.
XRP’s price movements are not a reflection of organic price discovery but are instead influenced by institutional flows. Those who think that these moves are random or part of a natural market process are missing the key factor—the market is being manipulated through these deliberate flows.
XRP’s Price Today
Despite the sharp drop on December 26, XRP is currently trading at $1.87, reflecting a slight 0.2% gain in the last 24 hours from $1.84. This price movement indicates a minor recovery following the institutionally driven volatility.
Chain Cartel’s analysis suggests that XRP itself is not weak; rather, the market structure surrounding it is vulnerable to manipulation. By understanding these institutional behaviors, traders can better navigate the ups and downs in the market, focusing on the flows that drive these changes rather than reacting emotionally to market fluctuations.
In conclusion, XRP’s price drop was the result of calculated moves by large players in the market, according to the analyst, using thin liquidity to their advantage. XRP’s market is not dictated by retail sentiment but by the flows of institutional money that manipulate the market for their benefit.
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