On January 30, the XRP price rallied 86% as members of the now-infamous Reddit-based investing group shifted their attention from Dogecoin. The strong breakout happened in the early trading hours as the fourth-biggest crypto by market capitalization became the new coin of focus by the r/Wallstreetbets crypto-focused off-shoot r/Satoshistreetbets.
Data acquired from TradingView shows that XRP soared from $0.28 to a peak at $0.51 before some profit selling pulled the price of the coin back to $0.41.
It seems like the antics and strategies of the past week that saw r/Wallstreetbets pump GameStop, AMC, and Dogecoin (DOGE), have poured into the weekend. Stellar (XLM) also saw its price pump in response to XRP’s price action.
After exploding by more than 800%, DOGE price has now plunged by almost 70% from its recent all-time high of $0.078 recorded on January 29. Data acquired from TheTIE also indicates that the rally in the XRP price happened simultaneously with a drastic spike in tweet volume.
Stellar’s XLM has also enjoyed attention from r/Satoshistreetbets which resulted in a price spike of 64% on January 27. That surge saw the price of XLM rise to $0.38 before it corrected to its current level of $0.318.
Legal Battle May Dampen XRP Rally
In the past several months, the price of XRP has been hit severely due to a lawsuit filed against Ripple Foundation by the United States Securities Exchange Commission (SEC). The SEC claims that the firm is operating an illegal securities offering since Ripple still frequently sells XRP tokens out of the treasury.
Recently, Ripple filed a Freedom of Information Act request with the SEC looking for the documents of Ethereum co-founders. The firm demands to know why Ether (ETH) is not considered as a security. It said that the regulator has:
“clearly picked two winners and ignored a growing and robust industry that is much larger than Bitcoin and Ether.”