The price pumping that Reddit group WallStreetBets has done is now benefiting Ripple. Even though the price of XRP is gathering momentum and shows no signs of exhaustion, it could soon undergo a correction.
The volatility in the markets emerging as a consequence of Wall Street Bets ideas recently benefited Ripple. The cryptocurrency of this network, XRP, reached a price of USD 0.4926, achieving a profit of 52.86% in just 24 hours.
Users in the Reddit group WallStreetBets have already helped to drive the prices of GameStop and Dogecoin. A few days ago, Ripple and Stellar benefited after this group also decided to pump their prices.
However, Wall Street Bets is not the forum that has caused Ripple’s price volatility. Those responsible for this are the users of the Reddit group Satoshistreetbets, who focus on the cryptocurrency ecosystem. This forum already has more than 200,000 users and has achieved great power of influence over the market.
The Euphoria about XRP Dramatically Increases the Number of Tweets
The price pumping went from DOGE to XRP, driving the latter’s price up as much as 86% in a matter of hours. After it was worth USD 0.28, it reached a daily peak of USD 0.51.
Given that Twitter users also showed their euphoria about that cryptocurrency, the number of tweets about it rose dramatically.
There was a rapid correction of Ripple’s price as a result of profit-taking. However, excitement seems to remain and there are no obvious signs of exhaustion.
It Seems that Ripple’s Price Has Just Started to Rise
Ripple has been facing severe legal problems in recent months, so many people wonder if the Wall Street Bets effect will spread. What happened in the case of GameStop, whose value skyrocketed on the US stock market, led to the creation of replicas.
A pumping of the crypto asset’s price is somewhat artificial, but the money is still there to stay until further notice. People only have to observe the price action and become aware of what might happen next.
Even though many believe that the pumping magically happens anywhere, the daily chart indicates that the momentum started at a very good point. The momentum confirmed an inverted shoulder-head-shoulder formation that had already been warning of a possible change in the trend.
Ripple’s price is currently gathering momentum and, although it shows no signs of exhaustion, it could soon initiate a correction. After the pullback, the odds are that the crypto asset will continue to be bullish, at least for the short term.
Status of the SEC’s Case against Ripple
The SEC argued in a lawsuit against Ripple that the company had illegally sold USD 1.3 billion worth of XRP for seven years. The regulatory agency also alleged that they had been promoting the token and paying for third-party support and advertising.
In recent days, Ripple responded to each of the SEC’s arguments in a 93-page document. The company said that XRP is not a security but a useful virtual currency.
Ripple mentioned the agreement that they reached with the US Department of Justice and the Financial Crimes Enforcement Network (FinCEN) in 2015. They registered XRP as a convertible virtual currency, which allowed trading in secondary markets.
By Alexander Salazar
