On Coinbase, the price of XRP peaked at $0.92 and then fell by around 30% in seconds
In the past few hours, the price of XRP has exceeded $0.90 on the Coinbase cryptocurrency exchange and then fell by around 30% in a few seconds. This was the highest price since May 2018.
Growth of XRP led by Coinbase
It seems that the rally was mainly driven by Coinbase users, as the price of XRP did not reach the same peaks on the other exchanges. On Binance and Bitstamp, for example, the maximum was $0.79.
Shortly after the crash, the hashtag „Coinbase“ started to trend on Twitter in the US.
Although the official Coinbase page states that the platform continued to operate normally, other sources show that the exchange did indeed encounter problems.
„Eww! I am a new Coinbase user and all my XRP trades have ended up in limbo. They finally only appeared AFTER the bottom collapse, and I lost a lot of money!“, writes user Mike Palagi in the comments section of Downdetector.
What caused the crash?
The rally could have started at the end of October, when an anonymous whale sent $50 million in XRP on Bitstamp. Since then the XRP/USD pair has grown parabolically, by 137% in a single week, reaching its highest price in over two years.
Before the surge and subsequent crash, trader cryptoSqueeze commented on Twitter that the funding rate of XRP had become negative:
„Funding negative for XRPUSDT on FTX and OKeX. What could go wrong?“
During the rally, the funding rate of XRP’s perpetual swap contract on Binance remained at 0.01%: in other words, there was a balance between buyers and sellers, although the price increased by 35% in one day.
Although the growth was triggered by a short squeeze, sources who prefer to remain anonymous revealed to Cointelegraph that some market makers on Coinbase withdrew their orders as soon as the rally became overheated.
Despite this incredible price increase, XRP remains negative by 78% compared to its all-time high in January 2018. Compared to Bitcoin (BTC), XRP is down 83% from its maximum.