Ripple Leaps Higher Than DogeCoin - Price Analysis.
2021-01-31 | Eddy Morgan
![Ripple Leaps Higher Than DogeCoin - Price Analysis.]()
Ripple [XRP], presently the 4
th global leading cryptocurrency in line with
CoinMarketCap, has suddenly leaped higher within a recent surge powered by WallStreetBets traders.
XRP, a digital token created by the embattled San Francisco-based company Ripple, has raised over 50% to its price over the last 24 hours, climbing after dogecoin, a tongue-in-cheek "joke" bitcoin rival named by Elon Musk as his "fav" cryptocurrency, crashed—losing over half its recent gains.
Ripple's XRP
is the second cryptocurrency to suddenly pump
in the week after dogecoin's huge meme-fuelled rally briefly sent its price almost 1,000% higher (though there has been speculation bitcoin could emulate GameStop's recent short squeeze).
Dogecoin and XRP have surged
in the week as retail traders organized via Reddit's WallStreetBets forum and groups on Telegram and Discord
are colluding to "pump and dump" the digital tokens.
Members
of 1 Telegram group that has over 100,000 people in it have named XRP as a crypto asset
to shop for.
"Focus on XRP," wrote one Telegram group member. "Please buy & hold."
Traders turned to cryptocurrencies
in the week after a long-running battle between bullish retail traders organized via Reddit's WallStreetBets and Wall Street hedge funds that have long been shorting GameStop shares reached its climax—with regulators and brokerages trying to calm frantic markets with heavy-handed restrictions.
Tesla TSLA -5% chief executive Elon Musk, who regularly posts about cryptocurrencies on Twitter, helped drive dogecoin higher before giving bitcoin a long-awaited tacit endorsement.
The bitcoin price, after dipping under $30k per coin
in the week, suddenly leaped 20% higher after Musk changed his Twitter bio to "#bitcoin" and posted: "In retrospect,
it had been inevitable."
However, despite XRP's
quite 50% rally, traders don't think
it'll reach
the type of short-term gains seen by dogecoin—though it could have further to run.
"Buying XRP at these prices, while its future hangs
within the balance,
maybe a pure gamble," veteran trader and author of The Crypto Trader, Glen Goodman, said via Twitter DM. "The WallStreetBets crowd could easily push it
tons higher, but
the instant they lose interest and
advance to
a special target,
the worth is certain to collapse again."
"I don't expect XRP's pump to be as big as dogecoin's
in the week, though
it'll find yourself with a blowoff," said cryptocurrency trader and economist Alex Krüger, speaking via Telegram. "XRP is harder
to maneuver as it features a much larger
market capitalization than dogecoin but I presume
they might take it up to $0.75-$1.00 USD."
Krüger also warned that, unlike with GameStop, there are "no hedge funds short-selling doge, so
it's not liquidated hedge funds who provide the exit liquidity, but latecomers who are left holding the bag," adding: "How many doge stocks 'investors' will realize they fell for
one among the most important pump & dumps in history?"
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