Bitcoin Whales Might Be the Factor Behind XRP's Sudden Crash After Each Price Spike

A prominent XRP market commentator triggers speculation regarding the factor behind XRP's sudden crash after each price spike.

Prominent XRP market commentator has sparked speculation on what could be causing the token to quickly drop after each price spike.

XRP has seen persistent price volatility despite several positive developments for the token.

Despite progress in the race to launch an XRP ETF, its inclusion in the U.S. digital asset stockpile, and recent breakthroughs in the Ripple vs. SEC lawsuit, the token has struggled to maintain any gains.

Instead, the asset has often seen a sharp rise followed by an equally swift decline, trading at the lower end of the $2 range at press time. This has raised concerns among investors.

For instance, this pattern occurred on March 2, when President Donald Trump announced that XRP would be part of the U.S. digital asset stockpile.

The token immediately surged by 34% in a single day, reaching $3. However, this rally was short-lived, as XRP dropped 18.83% the following day. The downtrend continued, pushing the price back to the lower end of the $2 mark.

Another instance occurred on March 19, after Ripple CEO Brad Garlinghouse confirmed that the SEC had abandoned its appeal against Ripple, bringing the legal battle closer to resolution. This news triggered an 11.32% price jump for XRP on the same day. However, within the next three days, the token shed nearly 7% of its gains.

Market analysts have questioned why these rapid downturns occur, with some attributing it to natural market forces. Notably, assets often experience such sharp declines after hitting resistance during a sudden spike.

However, a recent analysis by software engineer and market commentator Vincent Van Code suggests that Bitcoin whales might be responsible for these sharp corrections.

He noticed unusual activity in the XRP/BTC pair, with massive buy and dump movements. In turn, this triggers a cascading effect as arbitrage traders and bots adjust the XRP/USDT balance.

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

Van Code asked if Bitcoin whales, who hold billions of dollars in BTC, were simply engaging in XRP swing trading or if their actions were part of a strategy to keep XRP from becoming a significant threat. He suggested that the repeated crashes might be a coordinated effort rather than random trading fluctuations.

According to him, these Bitcoin whales, who had accumulated their holdings at extremely low prices, could be using their wealth to manipulate the XRP market and prevent it from achieving sustained growth.

He noted that similar dump patterns have previously occurred, pushing the XRP/BTC pair lower than before the initial surge. However, it’s worth mentioning that these suggestions remain unconfirmed.

Can a Higher Trading Volume Help?

Furthermore, Van Code discussed the need for much higher trading volumes to counteract what he believes are manipulative moves. According to him, $40 to $50 billion in trading volume for XRP would be sufficient.

He argued that without a significant increase in volume, XRP would continue experiencing these abrupt corrections. Currently, CoinMarketCap data confirms that XRP has averaged $6 billion in 24-hour volume since March at the $2 price.

To hit the $50 billion volume mark consistently, we might have to see XRP go above $5, he added.

Some optimistic institutional adoption and demand can help in the long run. Meanwhile, it is important to note that XRP is not the only asset to experience such sudden price slumps. Bitcoin and altcoins like Cardano (ADA) also saw massive drops early last month.