Crypto prices vary between exchanges all the time. However, sometimes the difference is so large that it is bound to draw attention. One such differential in the price of XRP (XRP) on most exchanges-v-Gatehub. At the time of writing, there was a huge bearish candle on Gatehub, and XRP (XRP) was trading at $0.36, after hitting a low of $0.34. This could mean that someone placed a large sell order at this price level and it got filled, hence pulling the price lower. Check out the chart below.
While price manipulation, is nothing new in crypto, Gatehub comes across as a credible exchange. It has a wide offering of assets both crypto and precious metals and allows investors to trade cryptos directly on the ripple network. As such, the best bet is that someone sold a huge amount of XRP (XRP) at once, pushing the price down significantly, and it’s unlikely that it is a manipulated move.
The massive sell order for XRP on Gatehub is possibly nothing to worry about. That’s because Gatehub is a relatively small exchange and doesn’t have the volumes to have any major impact on the price of XRP in the last 24-hours, 77% of the XRP trades on Gatehub have been against the USD and they amount to about $1,700,000. This is negligible when compared to the overall XRP volumes in the last 24-hours, which are at over $648 million. This means that it is unlikely to have any adverse effect on the price of XRP (XRP).
Besides, this is a massive opportunity for arbitrage traders to drive the price up. The price difference between Gatehub and other exchanges is so huge that traders are likely to take advantage, by buying XRP on this exchange and selling at the market price on other exchanges. That’s because there is a higher chance of Gatehub prices catching up with the rest of the market than the other way round. This demand could push prices on Gatehub pretty fast, to reflect the prevailing price on market cap.
However, even in the scenario that the price breaks downwards, traders do have a heads up on a possible price floor at $0.34 – $0.36. This can help in mitigating risk, and placing more calculated buy trades at this price level, which is possibly a long-term support level.
Beyond these short-term price movements, XRP’s long-term trajectory is up. Recently, Brad Garlinghouse stated that they expect at least a dozen banks will be using XRapid by 2019. Brad is someone in the know and probably keeps in touch with top banking executives all across the world. As such, his proclamation probably comes from his interactions with these top bankers. His statement is a follow-up to one he made earlier in the year that at least one bank would be live with XRapid in 2018. End of year is still far away, and anything could happen between now and then. If a major bank embraces XRapid before the end of the year, then it could positively impact the value of this crypto, and give it a value boost before EOY.