Reddit goes wild as XRP price collapses 50% hours after hitting its two-week high

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XRP, the fourth largest cryptocurrency by market cap, tumbled nearly 50% in less than two hours on Feb.1 as a trading frenzy backfired on new investors.

XRP / USD 1-hour candlestick chart (Bitstamp). Source: TradingView

XRP traders maintain 48% losses

Data from Cointelegraph Markets and TradingView showed extreme volatility set in for XRP / USD during Monday’s trading, hours after the now infamous Reddit group r / Wallstreetbets decided to buy the token en masse.

After hitting highs of $ 0.75, losses increased rapidly and the downtrend accelerated until XRP bounced off lows of $ 0.39 – 48% below the top.

At the time of writing, XRP / USD was trading at around $ 0.45, with large swings still common in low time frames. According to The Tie, the daily social mood score has also reached values ​​that have not been achieved since January 2018.

XRP daily sentiment rating. Source: The Tie

In response, critics of the controversial altcoin initially warned what they viewed as the pitfalls of investing in Bitcoin (BTC) for short-term trading.

“Even if the $ XRP Army gets aggressive if you warm them up about the escrow-shaped elephant in the room, I still feel sorry for those who bought at 0.75c today. XR (I) P”, regular Cointelegraph Markets Keith Wareing summed up on Twitter.

DOGE holds out

Previously, XRP was in a different downtrend due to legal action against Ripple. The blockchain payment network is the largest investor. The rally had other fans who watched the coin hit lows below $ 0.16 just a few weeks ago.

Meanwhile, XRP wasn’t the only target Reddit traders hit that day. Dogecoin (DOGE) and silver posted huge gains.

At the time of writing, DOGE / USD held on to earnings that had taken it to nearly $ 0.04. A mention of Elon Musk in a late Sunday interview, in which it was singled out among other altcoins, had cheered fans of the meme-based altcoin.

In contrast, as Cointelegraph reported, there was little action in the Bitcoin spot markets, with the next bullish support at USD 34,000 still to be realized.