A cryptocurrency analyst has issued a warning to XRP investors, suggesting that traditional banks might be strategically attempting to lower the altcoin’s value under the pretense of regulatory concerns. The report suggests that this approach is meant to enable institutions to discreetly accumulate XRP at lower prices before a potential surge, thereby diminishing the influence of retail investors.
Banks Accused of Manipulating XRP for Market Dominance
In a social media thread on July 20, crypto analyst Pumpius cautioned investors, accusing major banks of intentionally spreading negative information about Ripple Labs to depress XRP’s price for their benefit. He pointed out that the recent criticism towards Ripple’s pursuit of a national trust bank charter and access to the US Federal Reserve system is not truly about regulatory caution. Instead, he argues it’s a strategic move to undermine XRP while banks covertly purchase large quantities of tokens at reduced prices.
Pumpius suggests that labeling Ripple’s bank charter as “risky” might be part of a concerted effort to instill Fear, Uncertainty, and Doubt (FUD) among retail investors. This strategy, he asserts, allows institutions to sway regulators and press into issuing warnings that depress XRP’s market value, thereby gradually shifting control away from retail investors.
Moreover, the analyst claims that banks are not inherently against cryptocurrency, but rather against public access to transformative assets like XRP. With Ripple nearing full integration into the US financial system, including potential direct access to the FED, Pumpius believes traditional institutions might view XRP as a significant threat to their market dominance.
The analyst also argues that the fluctuations in XRP’s price are intentional, aimed at displacing smaller investors. He believes the ultimate objective is to transition ownership from retail investors to institutional entities before a significant market breakout.
Market Dips Create Opportunities for Large Investors
In his post, Pumpius further elaborated on the broader market trends affecting XRP. He highlighted whale activity as a strong indicator that major players are treating market declines as potential buying opportunities. According to the report, each instance of negative news correlates with a surge in high-volume XRP transactions. This implies that institutional players might be exploiting retail panic and sell-offs induced by fear as chances to accumulate.
Pumpius also observes that while many investors are exiting their positions, whales with long-term strategies or insider knowledge are apparently increasing their holdings. He concludes that the prevailing market cycle is an “accumulation battle,” where institutions are allegedly manipulating narratives to drive prices down and potentially secure control over XRP’s future growth. The analyst warns that by the time XRP’s price skyrockets, the opportunity to purchase at lower levels will likely have vanished for most investors.
