XRP crashed hard from two-month highs reached early Monday, with a planned community effort failed to deliver the desired results.
The cryptocurrency is currently trading at $ 0.42 – 40% lower than the high of $ 0.75, which according to CoinDesk 20 data reached around 11:10 UTC.
A coordinated buying effort by about 200,000 members of the two-day-old Telegram group called ‘Buy & Hold XRP’ at 08:30 EST was supposed to push the cryptocurrency to higher resistance levels. Instead, XRP withdrew from $ 0.75 to $ 0.60 before the crowd bought and extended losses to $ 0.40 after 8:30 a.m. EST.
The crypto-currency nearly doubled over the weekend, hitting two-month highs earlier today. The price action suggests that some traders bought XRP in anticipation of a price pump, and accidentally pushed it higher. Some of them may now be caught on the wrong side of the market.
With the exact time, the exact reason for the price drop is not known. It is quite possible that a whale (large investor) benefited of the price increase and his possession discarded. Pump and shower strategies are not new to crypto markets, especially not to XRP.
A Reddit report, which talked about an attack on crowds at 8:30 a.m. and how it could be successful, has now been removed by Ripple moderators. However, the Telegram group is still active, with the member blaming the currency term for the price drop.