Bots: The Secret XRP Puppeteers? 🤖

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The curious case of XRP‘s price movements has left many an expert scratching their head, rather like a befuddled dowager trying to make sense of a particularly vexing crossword puzzle. The culprit, it seems, may be those scoundrels of the digital world: trading bots.

However, as the real demand for XRP from retail and institutional investors continues to grow, the influence of these automated trading bots may become as passĂ© as last season’s couture.

The Great XRP Caper: Bots Behind the Curtain?

Vincent Van Code, a software engineer of some renown, has observed that XRP’s price tends to jump about like a jackrabbit on a pogo stick whenever there’s a spot of good news, such as a legal victory or a strategic partnership. But what’s truly curious, old chap, is that unrelated tokens like ADA and XLM also get a boost, rather like a rising tide lifting all boats, even if they’re not actually, well, related.

The Hidden Hands Behind XRP’s Price: How Bots Move the Market and When It Might Stop

Every time XRP gets major news — like a legal victory or a high-profile partnership — its price rises as expected. But what’s strange is that unrelated tokens often rise too. ADA, XLM, even…

— Vincent Van Code (@vincent_vancode) July 3, 2025

Van Code posits that the main reason for this phenomenon is those high-frequency trading bots, which use priority APIs (often on Binance, darling) to manipulate the market with all the subtlety of a sledgehammer. These bots, it seems, react to news within milliseconds, faster than a debutante can say “good heavens!” They run strategies like arbitrage, spoofing, and wash trading to create artificial price momentum, rather like a conjurer pulling a rabbit out of a hat.

“Bots act as market makers with tight spreads but tilt the book in a desired direction. This subtly nudges price up or down while absorbing real trades,” said Vincent Van Code, with all the nonchalance of a seasoned gambler.

He added, with a mischievous twinkle in his eye, that the bots buy correlated assets like ADA and XLM when XRP pumps, spreading the illusion of a broad market rally, even without any actual, well, catalysts.

Vandell, Co-founder of BlackSwan Capital, confirmed this view with all the solemnity of a High Court judge. He stressed that HFT bots operate exactly as described, and many people don’t realize how significant their impact is, rather like a stealthy ninja sneaking up on an unsuspecting victim.

Similarly, Denver Ulland, an investor of some note, shared that these bots can create real-time buy/sell pressure, pushing the price in any direction they choose, rather like a master puppeteer pulling the strings. He noted, with a wry smile, that while bots generate price volatility, the new money flowing into the market isn’t large enough, rather like a drop in the ocean. As a result, prices don’t rise significantly until big institutional capital comes in, like a cavalry charge to the rescue.

Because of this, Van Code suggested stricter regulations on priority APIs or a move toward more transparent decentralized exchanges (DEXs) to reduce their impact, rather like a referee blowing the whistle on a foul play. Meanwhile, if Ripple successfully rolls out global liquidity corridors, real demand for XRP could outweigh bots’ short-term influence, like a tsunami washing away a sandcastle.

XRP, it seems, is one of the rare altcoins attracting both retail and institutional investors, like a siren luring sailors to their doom. Recently, Ripple filed for a US national banking license to expand RLUSD and offer digital asset custody services, giving XRP investors more reason to hold and buy XRP, like a loyal subject pledging fealty to their monarch.

TradingView data shows that XRP dominance rose from 1.1% at the end of 2024 to 5.5% in Q1 2025 before adjusting to 3.97% today, like a seesaw tilting precariously in the balance. đź“Š

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2025-07-04 12:38