The XRP price rose overnight to over $0.92 on the US cryptocurrency exchange Coinbase. Subsequently the price fell by about 30% within seconds. This was the highest price level since May 2018.
Rally comes from Coinbase
Above you see the exchange rate of XRP expressed in dollars on Coinbase. The rally was apparently driven by Coinbase users, as XRP’s price did not reach the same level at other fairs. Bitstamp and Binance, for example, had a maximum of only $0.79 during the same peak. The rally resulted in an increase of 227%.
Coinbase and bullrun
When XRP reached $0.92, Coinbase crashed and became #coinbase trending on Twitter in the United States. While Coinbase’s official status page currently says everything is working normally, many Twitterers are expressing their displeasure. Albeit with a wink.
The rally may have started at the end of October when an anonymous whale sent $50 million worth of XRP to BitQT. Since then, the cryptocurrency has experienced a strong parabolic uptrend, with 137% growth in the last week.
Before the price spike and the immediate crash, the popular pseudonymous trader cryptoSqueeze noted that the financing rate for XRP was turning negative.
Freely translated: ‚Negative funding on XRPUSDT on FTX and OKeX. What can go wrong?
During the rally, the financing rate for the XRP perpetual swap contract on Binance remained at 0.01%. This meant that there was almost a perfect balance between buyers and sellers, as the price rose by more than 35% in one day.
Airdrop Spark tokens from Flare
Many analysts also point to the upcoming airdrop from the Flare network as a possible reason for the increase. The new Flare platform is a platform that helps customers execute smart contract services on XRP, using a virtual machine supported by Ethereum. The associated currency is called Spark. A total of 45 billion Spark tokens will be distributed during the airdrop. XRP investors receive these 1:1. So at 100 XRP you will receive 100 Spark tokens.