An explosive peak at $90.13 followed by a crash to $0.00286 within a minute: XRP just created one of the strangest candles ever seen on Kraken. This spectacular anomaly, exclusive to Kraken, unveils hidden market microstructure mechanisms.
On November 19th, Ripple (XRP) traders witnessed a highly unusual phenomenon. On Kraken’s XRP/USD pair, a one-minute candle showed a peak at $90.13 before plummeting to $0.00286, then instantly rebounding to around $2.179. Kevin Cage, an active member of the crypto community, was among the first to report this aberration on X with a straightforward comment: “XRP just got a super weird flashwick on Kraken and triggered my alerts.”
What makes this event particularly intriguing is its complete isolation. While Kraken displayed this grotesque candle, all other major platforms continued showing normal trading around $2, without the slightest abnormal volatility. This divergence immediately raises a fundamental question: was this genuine price discovery or simply a technical artifact?
The most convincing explanation comes from Jay Grissom, a recognized member of the crypto community who dissected the event from a market microstructure perspective. His theory rests on a simple but often misunderstood concept: the disproportionate impact of extremely low-volume orders in a thin order book.
Grissom illustrates his point using the smallest unit of XRP, the “drop.” A single XRP equals one million drops, allowing for the exchange of infinitesimal fractions of the token. Imagine a trader buying a single drop (i.e., 0.000001 XRP) for $0.01. Mathematically, this transaction values XRP at $10,000 per coin. The absurdity is only apparent: the notional value remains one cent.
The mechanism becomes fascinating when you incorporate this micro-execution into a larger order. If the same trader simultaneously buys 5 XRP at $2.50 each ($12.50 total), their total cost amounts to $12.51 for 5.000001 XRP. The effective cost basis then comes out to approximately $2.502 per token: the drop purchased at an astronomical price almost completely disappears into the average.
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Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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