XRP, the number four cryptocurrency by market cap, crashed by nearly 50% in less than two hours on Feb. 1 when a trading frenzy backfired new investors.
XRP traders account for 48% losses
Data from CoinTelegraph Markets and TradingView showed that XRP / USD showed extreme volatility during Monday trading hours after the now infamous Reddit group r / Wallstreetbets chose to buy the token en masse.
After hitting highs of $ 0.75, losses started to mount up quickly, with the downside accelerating until XRP rebounded from lows of $ 0.39 – 48% below the top.
At the time of writing, XRP / USD was trading at around USD 0.45, with wide swings still common over short time frames. According to data from The Tie, the social daily sentiment score has also reached levels not seen since January 2018.
Critics of the controversial altcoin were the first to respond to warn about what they saw as the pitfalls of investing in Bitcoin versus Bitcoin (BTC) for short term trading.
“Even though the $ XRP army gets aggressive when you get them excited about the escrow-shaped elephant in the room, I still can’t help but feel sorry for those who bought for .75 cents today. XR (I) P, “regular Cointelegraph Markets’ contributor Keith Wareing summarized on Twitter.
Previously, XRP had experienced a different downward trend due to legal action against Ripple, the blockchain payment network that makes up the largest investor. The rebound had delighted other fans who had watched the coin hit lows of less than $ 0.16 a few weeks ago.
Meanwhile, XRP wasn’t the only target of Reddit traders back in the day, with Dogecoin (DOGE) and silver with huge increases.
At the time of writing, DOGE / USD was holding on to its profit, which brought it to nearly $ 0.04. A mention of Elon Musk in an interview Late Sunday, seeking out other altcoins had bolstered sentiment among fans of the meme-based altcoin.
By contrast, as Cointelegraph reported, there was little action in the Bitcoin spot markets, with the best bullish support at USD 34,000 yet to be realized.