The prices of Ethereum (ETH) and Ripple (XRP) surged by more than 10 percent in the past five minutes, without prior announcements or developments being made in the last 12 hours. This surge happened despite the lack of momentum of cryptocurrencies like Bitcoin. Investors are skeptical towards the sudden increase in prices of both cryptocurrencies, as a result of the lack of announcements on the same.
The spike in the volume of both cryptocurrencies happened around the same time at Bitfinex, thereby affecting other major cryptocurrency exchanges.
Members of the Ripple community earlier stated that a massive announcement is set to be announced in the near future, though no specific details have been revealed to the public yet.
On September 17th, Ripple announced that a new cryptocurrency product would go live in the month of October but the announcement of the product was regarding the regulatory side of the cryptocurrency market, rather than on the actual product itself.
Ripple’s regulatory relations in the Asia-Pacific and Middle East regions, Sagar Sarbhai stated that there is a strong benefit that digital assets and cryptocurrencies bring with them, keeping in mind the increase in regulations and policy-making in the Cryptocurrency domain.
Skeptics argue that the announcement made by Ripple led to the surge in Ripple’s value.
Ripple has been experiencing moments on the downside in the past few months, performing poorly against Bitcoin and the US dollar. Ripple’s oversold conditions could have triggered the market to initiate a sudden corrective rally.
On the other hand, Ethereum is not affected by developments in the industry, given that it is the second biggest cryptocurrency in the market today. Generally, a single event or development in the market rarely affects the price of Ethereum.
The surge in Ethereum prices may have most likely been caused by a group of investors pushing for a corrective rally after Ethereum showcase a decline from $220 to $190.
The market as of September 19th has been displaying an abnormal market movement, suggesting that a mid-term rally is not ready to be initiated until the market starts to become more stable.
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