XRP made a very striking jump this week on a major crypto exchange. On the monthly chart, the digital currency suddenly shot up to 100 dollars, a rate that deviates miles from the real value. What was behind this?
XRP price explodes on Upbit to 100 dollars
A remarkable monthly chart of XRP recently surfaced on the South Korean crypto exchange Upbit. A single candle saw a spike to $100. Crypto analyst Steph is Crypto pointed out the striking outlier in an X-post.
At the time of writing, the actual price of XRP is significantly lower, around $2.07. A rate of $100 would therefore equate to an increase of no less than 4,830 percent. If transactions were actually executed at that price, buyers would have paid an extremely high price. However, that chance seems small.
What caused the bizarre XRP rise?
Although the graph at first glance suggested a huge increase, in reality this is almost certainly not the case. Experts, such as the official X account of financial platform Incite AI, suspect that the bizarre spike was caused by a so-called ‘bad tick’.
A bad tick is an incorrect price display in an exchange’s trading system. This happens, for example, if an unrealistic price is registered due to a technical malfunction or human error, often for a fraction of a second.
The X account also points to a so-called ‘thin-liquidity spike’ as the cause. This means that there were hardly any buy or sell orders available at that time, so that a single, deviating order could temporarily drive up the price extremely.
With these types of thin-liquidity spikes or bad ticks, no real transaction is usually executed at that extreme price.
Can XRP ever reach $100?
A price of 100 dollars would be a dream scenario for any XRP investor. Yet, unfortunately, it is very unlikely. Based on the current circulating supply, such a price would amount to a total market value of $6 trillion. That is almost twice as much as the total value of the global crypto market at the moment.
However, a rise in the digital currency is certainly not excluded. According to analyst Amonyx, XRP is even on the verge of a major breakout. In a technical analysis he shared on
To initiate a flow of capital into XRP, a favorable macroeconomic environment is also needed. Many investors therefore hope that interest rates in the United States will soon be lowered.
Recent economic figures from the United States paint a mixed picture. On the one hand, inflation was not too bad and the labor market showed signs of cooling down. In December, only 50,000 jobs were added, while economists expected 60,000. This increases the chance of interest rate cuts later this year.
On the other hand, unemployment fell slightly to 4.4 percent, just below the expected 4.5 percent. This gives the Federal Reserve (Fed) less reason to intervene quickly with an interest rate cut.
Source: https://newsbit.nl/xrp-koers-knalt-naar-100-dollar-op-grote-crypto-beurs-hoe-kan-dat/
