The recent 31% drop in XRP’s price from $2.57 to $1.76 within a span of just three hours on February 3, 2025, has sparked a heated debate among market experts about potential manipulation. While the rapid recovery above $2 shortly after the decline raised eyebrows, some analysts believe that external factors, rather than organic selling pressure, were responsible for the sudden price movement.
Crypto analyst Dom was among the first to spot anomalies in XRP’s price behavior, noting that liquidity seemed to disappear during the last leg of the collapse. He suggests that market players may have purposefully delayed buy-side liquidity, allowing the price to drop before strategically placing purchase orders at lower levels to profit from the rebound.
Interestingly, the drop in XRP was not an isolated incident. Market expert Vincent Van Code observed similar price swings in Bitcoin, HBAR, and several other cryptocurrencies during the same period, raising questions about coordinated market behavior or algorithmic trading.
While panic selling and sudden liquidations may have contributed to the declines, the precise structure and speed of the event make it unlikely that natural market forces were the sole cause. Some speculate that market makers could be manipulating XRP to accumulate it at discounted prices by temporarily removing liquidity to facilitate a price drop.
This incident serves as a reminder of the inherent volatility in cryptocurrency markets and the potential for whales or institutional players to exert their influence during abrupt price fluctuations. XRP investors should exercise caution when navigating unpredictable markets and consider implementing risk management strategies, such as stop-loss orders, to mitigate potential losses.
As XRP has rebounded above $2, the debate continues about whether this was a coordinated move or simply a normal market correction. Regardless, the event highlights the need for increased transparency and regulation in the cryptocurrency space to prevent potential market manipulation and protect investors.
Tags: XRP, market manipulation, cryptocurrency, price volatility, risk management
Source: https://www.newsbtc.com/news/market-expert-claims-xrp-drop-to-1-76-was-manipulated/