Surprisingly, market visualizations highlight Ethereum (ETH) and Ripple (XRP) battling it out for the number two spot in the industry. For starters, XRP is riding high with positive news of financial partnerships building its bull run lately. The announcement resulted in a huge run that dramatically increased the crypto’s market cap and made XRP surpass Ethereum to become the second biggest cryptocurrency.
What happened with XRP?
Judging from the reaction of the Ethereum and Ripple communities, it’s correct to say there is more than meets the eye. Unlike the typical response exhibited by crypto enthusiasts, Ripple holders turned to mock and pocking jokes once Ethereum lost the number two spot. On the other hand, the Ethereum community played down the event as irrelevant although there was palpable frustration. Fortunately, there is always the question of whether XRP could sustain its price jump.
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Despite the joy at XRP’s peak in the ranking of crypto markets, there is still the question as to whether the coin has any real advantage to it. Considering both Bitcoin and Ethereum have excellent utility value, one may ask what is fueling the price hike behind Ripple’s XRP.
Essentially, crypto utility establishes strong fundamentals on price spikes, and there is no worry about a sudden price tank out of the blue. However, for XRP’s situation, the price hike is fueled by apparent news of adoption development. Anything like big news or similar efforts is by far no valid reason for a price jump. Instead, such a situation portrays a version of pump and dump, where the price goes up without a good cause, then dives down again.
Can XRP sustain the price jump?
Despite outperforming several of its crypto peers within the market, XRP did fail to retain the number two spot. As of writing, XRP is technically losing out with a -1.50% in the last 24 hours alone. Indeed, this indicates there could be possible manipulation from even Ripple itself. The theory could be extreme enough also to suggest possible manipulation from Ripple to keep XRP’s price stable for the use with the banks on board. It may make sense, but we can never know for sure the extent of the manipulation or who is behind it.
What’s next for XRP?
There have always been talks of manipulation within the Ripple community for a while now.
As a firm believer in the crypto market manipulation, Ripple holds no optimistic view of permanently overtaking Ethereum in the foreseeable future. However, for crypto enthusiasts, there is a need to be very cautious and strategically subtle with the announcements intended to shift market prices. While the good news is what we want, it should by no mean affect the stability of the coin. Such a situation develops into a price hike that is founded on pure speculation.