Ripple’s XRP surged by more than 200 percent in just four days of trading. However, its wild upside swing alarmed one brokerage platform.
Seychelles-based PrimeXBT announced on Monday that it would delist two XRP instruments: XRP/USD and XRP/BTC from its portal on February 10, 2021, becoming yet another trading platform to take drastic steps against Ripple’s native token.
Of late, exchanges active in the United States have removed XRP token from their offerings. Their decisions appeared after the Securities and Exchange Commission filed a lawsuit against Ripple Labs, its CEO Brad Garlinghouse and Chairman Chris Larsen for selling over $1 billion in XRP in an unregistered securities sale.
Nevertheless, exchanges operating outside the US purview, including Poloniex, CEO.io, and Binance (not Binance US), continued to offer XRP-enable trading services. In a way, PrimeXBT became one of the first non-US platforms to have barred XRP trading on its platform.
XRP Liquidity Concerns
The announcement also appeared after a two-day-old Reddit group of 200K subscribers launched a coordinated XRP buying campaign in the same fashion /r/WallStreetBets pumped beaten stocks of AMC Entertainment and GameStop.
On Tuesday, the XRP/USD exchange rate reached as high as $0.77 on buying frenzy, up 228 percent from its session low. Nevertheless, the pair quickly crashed lower by almost 35 percent as community efforts failed to pump the prices for so long.
The price action suggests that some traders bought XRP at local tops, anticipating that the token would rise the same as the AMC, Dogecoin, and GameStop stocks. Nevertheless, whales took advantage of the FOMO rally by dumping large amounts of XRP at session highs. That tapped many at the wrong side of the market.
Before the dump, Ripple appeared technically overbought, trading at levels that were too uncertain from a liquidity point of view. Analyst Income Sharks noted:
“Be careful of tunnel vision. I’ve never seen an asset recover after being removed from multiple exchanges.”
The Ripple token was now eyeing the $0.33-0.411 range as its interim support for a pullback. Meanwhile, it remained under pressure from $0.5-resistance level.
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
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[…] Less than two months ago, XRP prices fell from $0.55 to $0.20 after the U.S. Securities and Exchange Commission announced a lawsuit against Ripple Labs, prompting a number of exchanges to delist the cryptocurrency. […]