Ripple is back at the center of attention of the cryptocurrency community after a group of Redditors responsible for pumping failed stocks of GameStop and AMC Corporations choose to orchestrate the same buying frenzy for the blockchain firm’s native token XRP.
The last four days have witnessed the XRP/USD exchange rate jump from $0.23 to as high as $0.77—a 228 percent rally. The pair’s gains pushed the XRP’s market capitalization to $32 billion at one point in time, making it the fourth most valuable cryptocurrency in the space.
Ripple awaits correction after pumping 228 percent in four days. Source: XRPUSD on TradingView.com
As of Monday, the Ripple token was correcting lower, led by profit-taking sentiment. Its price against the dollar fell by 22.42 percent during the Asian and European session, leaving exposed traders with two options: Either repurchase it at the local lows or exit altogether after securing remaining profits.
What has worked in favor of Ripple is no underlying fundamental but WallStreetBets, a Reddit group that is on a mission to send rich hedge funds into losses. Their recent stint in the $43 trillion US stock market rallied the most-shorted stocks, forcing Melvin Capital to close its bearish positions with more than 53 percent of its capital wiped.
The cryptocurrency community, known for its anti-establishment views on global finance, has eyed WallStreetBets as their cue to orchestrate similar mob-led bullish frenzies.
Dogecoin, a meme cryptocurrency that practically has no reason to exist but to make jokes about the crypto sector, jumped more than 1,100 percent in a copycat rally. Nevertheless, its price quickly crashed by as much as 79 percent from its latest high of $0.01.