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 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.
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.