XRP Plunged More Than 50% After Its Latest Pump

XRP Plunged More Than 50% After Its Latest Pump

XRP, the digital token used by the Ripple network, lost more than half of its value in a matter of hours, falling sharply today after experiencing significant gains over the weekend.

The digital asset plummeted to as little as $0.37 this afternoon, according to CoinDesk data.

At this point, the token had declined roughly 51% from the intra-day high of $0.76 it reached close to 6 a.m. EST, additional CoinDesk figures reveal.

XRP suffered this pullback after rising more than 100% over the weekend, climbing from an opening price of $0.29 on Saturday to an intra-day high of $0.60 on Sunday.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Low Liquidity

When explaining these recent developments, analysts pointed to paper-thin liquidity, as well as how this situation made it easier for traders to manipulate the markets.

"Given XRP's delisting from the majority of USD banked exchanges, liquidity on XRP has become incredibly thin,“ said Jesse Proudman, CEO of crypto hedge fund Strix Leviathan.

"This lack of liquidity creates opportunities for global communities to coordinate pump and dumps which is exactly what the price action appears to indicate is happening.“

Denis Vinokourov,