Key Takeaways:
- XRP dropped after Ripple Swell 2023.
- In a classic ‘buy the rumor sell the news’ fashion, Ripple did NOT announce an IPO.
- Previous Ripple Swells had a similar effect on the coin.
YEREVAN (CoinChapter.com) – The hyped-up Ripple Swell event that took place in Dubai on Nov 7-9 triggered XRP bulls into a buying spree, as they pumped the coin to $0.73 on Nov 6. However, the hype died out as the event commenced, and XRP stalled at $0.68 for the previous 48 hours in a classic “buy the rumor sell the news” scenario.
So, what was Ripple’s rumor after all?
Ripple Swell did NOT announce an IPO
The annual Ripple hub announced the rebranding of its ‘RippleNet’ service to ‘Ripple Payments,’ emphasizing its vector towards enhancing crypto-based cross-border payments.
According to the company’s official press release, Ripple Payments is connected to over 70 payout markets globally, “combining crypto and fiat capabilities.” The expanded network is partially aimed at enterprise crypto adoption and will be able to fulfill users’ “liquidity needs on demand.”
Meanwhile, the Ripple executives did not announce an initial public offering (IPO), speculations that XRP holders were divided over. As CoinChapter reported in the previous Ripple Swell review, the rumors of Ripple going public caused much hype on social media, fueling the XRP rally as well.
But to get permission for an IPO, Ripple would have to go through the US Security and Exchange Commission’s designated process. Needless to say, the agency is not very fond of the company, considering the ongoing lawsuit.
XRP price consolidated
Once the hub launched on Nov 7, and the speculations died down, XRP followed suit and dropped 7%. Notably, the decline came amid a Bitcoin-led rally across the market.
Additionally, the previous four Ripple Swell events had a similar effect on XRXP, as seen in the weekly chart below. Ripple held the event virtually in 2020-2022 because of Covid concerns. Nonetheless, a level of hype preceded the events but failed to produce a rally afterward.
In 2019, the XRP price rose 30% in the month before the hub and completely pared the gains afterward. Similarly, in 2020, the price jumped 12%, only to lose all the advance in the two weeks after Ripple Swell. An identical situation came in 2021. The 2022 hub was the notable exception with a 34% drop before the Swell event and a 30% jump afterwards.
