Ripple (XRP), the fourth largest cryptocurrency by market cap, is currently in the midst of a massive collapse and has dropped to $ 0.41, a decline of over 20 percent.

 

 

Coincheck briefly suspends the “sell” button for Ripple (XRP)

Meanwhile, Coincheck, one of the largest cryptocurrency exchanges in Japan, temporarily stopped processing XRP sales orders, according to a statement on Twitter. The function was then re-opened by the trading platform. The suspension came after the token dropped a significant portion of its earnings. XRP had surged to a monthly high of $ 0.75 on Bitfinex after several pump groups made a coordinated effort to artificially raise the token price. An hour later it dropped by 30%. Coincheck is primarily known in the industry for losing about $ 560 million worth of NEM (XEM) tokens in early 2018.

Many analysts did not find the XRP rise sustainable. According to a report in Forbes, economist Alex Kr├╝ger used the following statements:

“I DO NOT EXPECT THE RISE OF XRP TO BE AS GREAT AS DOGECOIN’S RISE THIS WEEK, BUT IT WILL RESULT IN A DOWNWARD EXPLOSION. THE PRICE MOVEMENT OF XRP IS MORE DIFFICULT BECAUSE IT HAS A MUCH MORE MARKET VALUE THAN DOGECOIN; BUT I PREDICT THAT USERS CAN INCREASE THE PRICE UP TO 0.75 – 1.00 USD. ”

At the time of writing, the exact reason for the price drop is unknown. However, according to a report in CoinDesk, it is quite possible for a whale to benefit from the price increase and dump its assets. Pump and dump strategies are very popular in the crypto markets.

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