Retail Traders on Reddit make Ripple XRP Jump 100%
The retail investors, after the significant increase in Reddit-based XRP Pump discussions, made the Ripple (XRP) coin’s price jump above the US$0.58 level. This is the first time the XRP price breached the US$0.58 level since it nosedived on December 17, 2020, following US SEC’s lawsuit against Ripple and its top executives.
After this massive rally in the XRP price, Ripple has become the 3rd most valuable cryptocurrency, in terms of market cap. Ripple XRP’s market capitalization has now become more than US$26-billion.
The 100% increase in XRP price happened after the members of a crypto-focused Reddit group, r/SatoshiStreetBets, started discussing it. Once the discussion increased, it led to a huge rise in XRP’s demand from retail traders. In just 2-days, the Ripple XRP’s price increased from US$0.28 level to US$0.58 level (a price increase of 100%).
XRP’s massive price increase due to Reddit discussion is not a new and unique phenomenon for this crypto only. A similar and even steeper price increase took place in the case of meme-based cryptocurrency, Dogecoin (DOGE). After the Reddit discussions at r/WallStreetBets and r/SatoshiStreetbets, the price of DOGE soared by 900% within 24-hours. In fact, it also went on to become one of the top-10 cryptos in terms of market cap.
After the massive price rise of XRP, all the losses caused due to SEC’s lawsuit in December 2020 has been done away with. The US Securities and Exchange Commission had filed lawsuits against Ripple and its two top-level executives for selling unlicensed securities in XRP format. This news led to a 70% fall in the price of XRP. However, after the addition of around US$13-billion in the market capitalization of XRP, the Ripple XRP’s price is now back at the same level as it was before the action taken by SEC.
XRP is receiving huge support from the retail traders, evident from the discussion in Reddit, followed by a 100% jump in its price. In its official response to the allegations leveled by SEC, Ripple’s management has said that their XRP crypto has been recognized as virtual currency by the US Department of Justice (DOJ) and FinCEN.
In a tweet, Ripple CEO Brad Garlinghouse, has said:
“Our defense begins today. Innovation is on trial, and we stand shoulder to shoulder with our partners & the community to defend it. Together, with appropriate regulatory oversight, we can modernize outdated laws that clearly aren’t working to protect consumers and ensure orderly markets.”
