A Market Pundit Discusses XRP Price Dynamics

No Hidden Agenda to Suppress XRP Prices
A market pundit believes there’s no hidden agenda to suppress the price of XRP and shares insights about its recent growth stalling.

XRP recently surged from $2.28 to $2.6 after Ripple CEO Garlinghouse announced that the U.S. SEC dropped its appeal in a long-running lawsuit against the company. Some believed the four-year legal battle suppressed XRP’s price. However, despite nearing its resolution, XRP couldn’t break the $3 mark, leading to doubts about the reasons for its stalled growth.

Insights from Vincent Van Code

Market analyst and software engineer Vincent Van Code addressed these concerns on X, asserting that the primary factor limiting XRP’s growth isn’t a hidden agenda but market mechanics like high-frequency trading and price manipulation by major traders.

Market Manipulation and Low Volume

Van Code explained that low trading volumes make price manipulation easier. He noted the prevalence of small orders, often below 6 XRP, due to “trade dusting,” which inflates trading volume and creates a false impression of liquidity.

“Make no mistake, price is being manipulated,” he said, indicating that XRP’s movements were being balanced against Bitcoin and Ethereum, both of which were also facing heavy sell-offs. Despite these indications, Van Code reassured investors he wasn’t selling, viewing the situation as temporary market noise.

No Hidden Agenda, Just Market Mechanics

Addressing concerns about manipulation motives, Van Code firmly dismissed the notion that institutions aim to suppress XRP’s price. “Oh god no. It’s purely to make money,” he asserted. He alleged that high-frequency trading bots, operated by Binance VIP customers, have an advantage due to their access to rapid trading data. This allows them to see orders before retail investors, creating a disparity that enables price manipulation.

“The majority of exchanges source liquidity off Binance,” he noted, asserting that while Binance might not be engaging directly in manipulation, it fosters an environment conducive to such practices, benefiting from spreads, fees, and liquidity payments.

Long-Term Holding is the Best Strategy

To counteract these manipulations, Van Code suggests that retail investors adopt a long-term holding strategy rather than trying to outmaneuver high-frequency bots. He emphasized that during low volume periods, market makers receive substantial fees to provide liquidity, which diminishes the efficacy of high-frequency trading.

“Retail are sitting ducks,” he remarked. “You can’t beat them in trading. You can just buy and hold, that will cripple them.” He admitted to ceasing attempts to time the market in favor of focusing on long-term accumulation.