Experts Break Down How Bots Might Be Driving XRP’s Price Volatility

Several analysts and experts have observed that XRP price movements have unique and unusual models. They offered different explanations, and commercial robots are those on which many agree.
However, the influence of automated trading robots can be limited as the real demand for XRP of retail and institutional investors continues to grow.
Are the commercial robots behind the XRP price intakes are high price jumps?
Vincent Van Code, a well -known software engineer on X, noticed that the XRP price often jumps strongly in the event of positive news, such as a legal victory or a strategic partnership. Strangely, unrelated tokens such as ADA (Cardano) and XLM (Stellar) also increase prices, even without any direct news.
Van Code maintains that the main reason is high frequency trading robots that use priority APIs (often on binance) to handle the market. He explains that these robots react to the news in a few milliseconds, faster than humans cannot act. They organize strategies such as arbitration, the usurpation of usurcement and trading to create a moment of artificial price.
“Boots act as market manufacturers with tight deviations but tilt the book in a desired direction. This subtly pushes the price upwards or downwards while absorbing real professions,” said Vincent Van Code.
He added that the bots buy correlated assets like Ada and XLM when XRP pumps. This spreads the illusion of a large market rally, even without catalysts.
Vandell, co-founder of Blackswan Capital, confirmed this point of view in his response. He pointed out that HFT robots work exactly as described, and many people do not realize how significant their impact is.
Likewise, Denver Ulland, an investor, shared that these robots can create a real -time purchase / sale pressure, pushing the price in all the directions they choose. He noted that if the robots generate price volatility, the new flowing money on the market is not large enough. Consequently, prices do not increase significantly until the arrival of the big institutional capital.
For this reason, Van Code has suggested stricter regulations on priority APIs or an evolution towards more transparent decentralized exchanges (DEX) to reduce their impact. Meanwhile, if Ripple successfully deploys global liquidity corridors, the real demand for XRP could win the short -term influence of robots.
XRP is one of the few altcoins attracting both retail and institutional sales investors. Recently, Ripple has requested an American national banking license to extend the RUSD and offer digital asset childcare services, giving XRP investors more reasons to hold and buy XRP.

TradingView data show that XRP dominance increased from 1.1% at the end of 2024 to 5.5% in T1 2025 before adapting to 3.97% today.
Post experts decompose how bots could lead to the volatility of XRP prices appeared first on Beincrypto.