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XRP has collapsed from two-month highs reached early Monday, as a planned community buying effort failed to deliver desired results.
The cryptocurrency is trading near $ 0.42 at the time of writing, a 40% drop from the high of $ 0.75 reached around 11:10 UTC, according to data from CoinDesk 20.
A coordinated buying effort by some 200,000 members of the two-day-old Telegram group called “Buy & Hold XRP” at 8:30 a.m. EST was supposed to push the cryptocurrency to higher resistance levels. Instead, XRP fell from $ 0.75 to $ 0.60 before the mass buy and extended losses to $ 0.40 after 8:30 a.m. EST.
The cryptocurrency nearly doubled in value over the weekend and hit two-month highs earlier today. Price action suggests that some traders bought XRP in anticipation of a price pump, inadvertently pushing it higher. Some of them may now be trapped on the wrong side of the market.
At the time of going to press, the exact reason for the drop in prices is not known. It is quite possible that a whale (big investor) took advantage of rising prices and thrown away his holdings. Pumping and dumping strategies are not new to the crypto markets, especially for XRP.
A Reddit post, which spoke about an 8:30 a.m. crowd buying attack and its success, has now been deleted by Ripple moderators. The Telegram group, however, is still active, where the member blames downtime in trading for falling prices.
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