Are Robinhood Traders Behind the Price Leap at XRP?
Ripple currency XRP is on the rise again. (Graphic: Shutterstock.com)
No time right now?
After Bitcoin and Dogecoin, the next cryptocurrency is apparently the target of Robinhood traders: XRP / Ripple. The XRP rate has almost doubled in the past few days.
The ripple currency XRP is back in fourth place among the largest crypto currencies in the world – and has pushed the climber of the past weeks, Polkadot, back to fifth. Ripple and XRP were recently targeted by the US Securities and Exchange Commission. The crypto exchange Kraken even suspended trading with XRP in between. So how does the price jump currently come about?
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Are Young Traders Pushing the XRP Course?
The analyst who specializes in cryptocurrencies According to Tino Emden the price dynamics at XRP / Ripple indicate “a classic short squeeze”. This is reminiscent of the share prices of Gamestop or Nokia, on which a dispute between young traders, who mostly trade via broker apps such as Robinhood or Trade Republic, and large hedge funds has flared up in recent days. The traders, who mainly get information in the Reddit forum Wallstreetbets, are also responsible for the price jumps in Bitcoin and Dogecoin.
So now the so-called Robinhood traders may have targeted the cryptocurrency XRP. The course is according to Coinmarketcap has exploded from $ 0.2455 to $ 0.4997 in the past few days. The price is still hovering around the $ 0.46 mark on Sunday evening. The market capitalization has grown to around $ 21 billion. For comparison: Polkadot is trading at $ 14.5 billion.
Ripple Labs contradicts SEC allegations
Because of the difficulties with the SEC mentioned above, many investors have worried about falling prices in XRP in recent weeks. The SEC accuses the company behind it, Ripple Labs, of having violated US securities laws with XRP for seven years, as analyst Emden explains. On Friday Ripple had labs a 93-page document Filed with the SEC to refute the allegations. For example, XRP is not a securities or investment contract. The SEC also did not inform the company fairly that the sale of XRP might violate the law.
This news may have been reinforced by the Robinhood traders. A massive purchase of the cryptocurrency could have put the shortsellers in a mess – the price exploded. XRP is said to have been discussed more recently on Twitter. Chinese distributors had put the crypto currency on the list of those values in the past few days, which could soon be expected to increase in price due to acquisitions by young traders.
