- XRP’s recurring price crashes after sudden spikes are linked to potential manipulation by Bitcoin whales executing massive buy-and-dump movements.
- Increasing XRP’s trading volume to $40-$50 billion could help counteract this manipulation and support long-term price stability.
The cryptocurrency market is notorious for its volatility, but XRP’s price movements have puzzled investors for years. Each time the token experiences a price spike, it quickly crashes, leaving traders frustrated. Recent insights shed light on potential reasons behind this recurring phenomenon.
XRP’s Unpredictable Price Swings
XRP’s price pattern has become a familiar sight—an impressive surge followed by a rapid decline. For instance, on March 2, after an announcement that XRP would be included in the U.S. digital asset stockpile, the token’s value skyrocketed by 34% to $3 in a single day. Unfortunately, this gain was short-lived as XRP plummeted by 18.83% the next day. A similar situation unfolded on March 19, when Ripple CEO Brad Garlinghouse confirmed the SEC had dropped its appeal against Ripple. XRP spiked 11.32% but lost nearly 7% of its value within three days.
Market Forces or Manipulation?
Market analysts have long debated whether these crashes are natural market corrections or the result of market manipulation. Vincent Van Code, a software engineer and market commentator, suggests the latter. He points to unusual activity in the XRP/BTC pair, where massive buy-and-dump movements trigger cascading sell-offs as arbitrage traders and bots adjust the XRP/USDT balance.
Van Code raises a critical question: Are Bitcoin whales—who hold significant BTC reserves—using their wealth to manipulate XRP’s market movements? By swing trading or deliberately driving down XRP’s price, they could be preventing it from posing a serious threat.
Can Trading Volume Solve the Issue?
According to Van Code, the solution lies in increasing XRP’s trading volume to a consistent $40 to $50 billion range. Currently, XRP’s 24-hour trading volume hovers around $6 billion, which is insufficient to withstand whale manipulation. A substantial volume increase could make it harder for whales to sway the market.
Getting closer to understanding why the XRP pumps are squashed, and I noticed this large spike in the XRP/BTC, basically big BTC whales buying and dumping. This has a cascading effect as the arbitrage and bots balance out say XRP/USDT.
So, question is, is it just BTC whales…
— Vincent Van Code (@vincent_vancode) April 1, 2025
While Van Code’s theory remains unconfirmed, it highlights the need for higher liquidity and institutional adoption. A stronger trading volume could fortify XRP against manipulation, paving the way for sustainable growth. As the crypto market evolves, only time will tell if XRP can overcome this challenge and establish long-term stability.
