Several analysts and experts have observed that XRP's price movement shows a unique and peculiar pattern. They have presented various explanations, with many agreeing that trading Bots are the cause.
However, as the actual demand for XRP from retail and institutional investors continues to increase, the impact of automated trading Bots may be limited.
XRP Surge, Due to Trading Bots?
Well-known software engineer Vincent Van Code has often witnessed XRP's price rising sharply when there is positive news, such as a legal victory or strategic partnership. Strangely, unrelated tokens like ADA (Cardano) and XLM (Stellar) also see price increases without direct supporting news.
🔥The Hidden Hands Behind XRP's Price: How Bots Move the Market and When It Might Stop🔥
— Vincent Van Code (@vincent_vancode) July 3, 2025
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…
Van Code argues that the main cause is high-frequency trading Bots. These Bots primarily use APIs (mostly from Binance) to manipulate the market. He explains that these Bots react in milliseconds to news and act faster than humans. They execute strategies like arbitrage, spoofing, and wash trading to create artificial price momentum.
"Bots act as market makers with narrow spreads but tilt the order book in the desired direction. This subtly moves prices up and down while absorbing actual trades," said Vincent Van Code.
He added that when XRP surges, Bots buy associated assets like ADA and XLM. This spreads the illusion of a broad market rise without a catalyst.
Vandell, co-founder of Black Swan Capital, confirmed this view. He emphasized that HFT Bots operate exactly as described, and many people don't realize how significant their impact is.
Similarly, investor Denver Ulland shared that these Bots can create real-time buy/sell pressure to push prices in the desired direction. He noted that while Bots generate price volatility, new funds entering the market are not large enough. As a result, prices won't significantly rise until substantial institutional capital arrives.
Because of this, Van Code suggested strict regulation of APIs or a transition to more transparent decentralized exchanges (DEX). Meanwhile, if Ripple successfully launches a global liquidity corridor, actual demand for XRP could outweigh the Bots' short-term influence.
XRP is one of the rare altcoins attracting both retail and institutional investors. Recently, Ripple applied for a US national bank license to expand RLUSD and provide digital asset custody services. This provides XRP investors with more reasons to hold and purchase XRP.
According to TradingView data, XRP dominance rose from 1.1% at the end of 2024 to 5.5% in the first quarter of 2025, and is currently adjusted to 3.97%.
