The price of XRP has jumped 228% to reach $2 on the MEXC cryptocurrency exchange in what appears to be an obvious price crash.
XRP traded mostly around $0.60 on global exchanges yesterday. This position follows a modest 0.92% gain the altcoin saw on July 28, which allowed it to reclaim $0.60 territory.
XRP Price Reaches $2 on MEXC
However, amid consolidation at $0.60, XRP saw a price crash on the MEXC Global exchange. Community figure XRP Captain First it’s called public attention to the anomalous price behavior. The Crypto Basic investigation confirmed that the glitch occurred yesterday at exactly 07:21 UTC.
During this period, the price of XRP instantly skyrocketed from its usual trading level of $0.6087 to a high of $2. This represented a 228% increase in one minute. However, the $2 price was not sustainable, and XRP eventually crashed to lower values.
Interesting, XRP price Continued to trade above the normal trading level for three minutes. After falling from $2, XRP on MEXC continued to fluctuate between $0.61 and $0.63. Meanwhile, the global trading price on other crypto exchanges remained stable around $0.60.
The anomaly persisted until 07:25 UTC, when the price returned to its normal range. Our investigation showed that this price disruption only occurred in the spot market, and the perpetual futures market was not affected. As a result, short positions in the XRP perpetual futures market on MEXC were not affected by the sudden price spike.
Let us recall that a similar price crash occurred on the Bitrue exchange last April, when XRP crashed to $0.0001. However, as the Bitrue incident impacted the perpetual futures market, traders saw their long positions liquidated en masse.
What’s happened?
The cause of the MEXC incident remains unknown at the time of writing. Some XRP community figures pointed low liquidity as the culprit. However, CoinMarketCap data confirms that the MEXC XRP/USDT pair boasts $12.3 million in 24-hour volume with a liquidity score of 537. The pair also has a liquidity depth of +2% at $675k, indicating ample liquidity.
As of yet, MEXC has not issued a press release on this matter. Additionally, their media team has not responded to our request for a statement as of press time. This report will be updated in light of any updates to reflect their response.
XRP has been at the forefront of price disruptions lately, with the community often attributing the anomalies to something “deeper.” One such disruption happened on the Gemini crypto exchangewhen XRP soared 7,836% to $50 in August last year. This event was caused by low liquidity as Gemini had just listed XRP.
