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The XRP price soared to over $ 0.90 on US cryptocurrency exchange Coinbase on November 24 only to drop by around 30% in seconds. This was the highest price level since May 2018.
Coinbase user-driven XRP frenzy
The rally was apparently driven by Coinbase users as XRP’s price didn’t see the same heights on other exchanges. Bitstamp and Binance, for example, recorded a high of just $ 0.79 during the same peak.
Shortly after the incident, the hashtag “Coinbase” started trending on Twitter in the United States.
While Coinbase’s official status page currently claims that everything is working normally, other sources show that the exchange is indeed having problems.
“WHAT CRAP – new to coinbase – and all my XRP trades went into limbo, then they finally showed up only AFTER the bottom fell – making me lose a lot of money !!!” pseudonym user Mike Palagi wrote in one of the comments on Downdetector.
What caused the accident?
The rally may have been triggered in late October when an anonymous whale sent $ 50 million of XRP currently for Bitstamp. Since then, the cryptocurrency has seen a strong parabolic uptrend, up 137% over the past week.
Before the price spike and the immediate collapse, the popular trader alias cryptoSqueeze noticed that the funding rate for XRP went negative. He She said:
Negative funding on XRPUSDT on FTX and OKeX. What could go wrong? “
During the rally, the funding rate for the XRP perpetual swap agreement on Binance remained at 0.01%. This meant there was an even balance between buyers and sellers as the price went up by over 35% in one day.
Although the brief squeeze initially led the rally, sources who preferred not to be named told Cointelegraph that some market makers on Coinbase withdrew their orders as the rally heated up.
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