Speculation is escalating within the cryptocurrency community regarding potential price manipulation of XRP by Coinbase. Recent claims from an investor have surfaced, suggesting that on-chain data indicates Coinbase drastically reduced its holdings of XRP, cutting its inventory from approximately 780 million tokens down to just 199 million in a matter of weeks—a staggering 69% decrease. This significant sell-off has led XRP supporters to create what they call the “XRP Suppression Index,” which reportedly demonstrates a high correlation of 0.87 between Coinbase’s selling activities and the caps on XRP’s price.
The dramatic reduction in Coinbase’s XRP holdings has attracted considerable attention, as the exchange was previously the fifth-largest holder of the token. Following the cut, Coinbase has fallen out of the top ten holders of XRP, prompting allegations that this form of selling does not align with typical market behavior. Critics argue that the actions of Coinbase could be indicative of coordinated manipulation rather than normal market dynamics.
In response to these allegations, lawyer Bill Morgan, who is known for his advocacy on behalf of XRP, has challenged the notion of manipulation. He argues that XRP’s price movements are consistent with typical market trends and not the result of any orchestrated effort to suppress its value. His perspective aims to quell the rising speculation and reassures investors regarding the stability of XRP’s support level.
Currently, XRP is holding steady above the critical support level of $2.65. Traders are eyeing a breakout above the $3.10 mark, which could potentially confirm a bullish trend for the cryptocurrency in the near future. As the situation unfolds, both supporters and skeptics of XRP remain engaged in dialogue over the implications of Coinbase’s actions and the overall health of the market.
