The XRP market delivered a dramatic surprise on Kraken when a one-minute candle printed an unbelievable price spike before crashing back to normal levels. Traders watching live saw a surreal vertical wick that did not match broader market action.
The situation raised concerns because it appeared to be a huge price surge, but no similar movement was seen on other exchanges.
The anomaly gained attention after Kevin Cage shared a screenshot of the one-minute XRP/USD chart. His post showed XRP shooting to $90.13 in a single candle before instantly slipping back to $2.18. The incident happened when market liquidity was low.
A large market order hit a thin layer of sell orders, causing the price to jump far above its normal trading range. The chart returned to normal almost immediately, confirming an order-driven distortion rather than a real surge.
What Caused the Flashwick
Flash wicks occur when liquidity thins and order books lose depth. During off-peak hours, market makers often pull back, leaving wider spreads and fewer resting orders. A large buy or sell order can sweep through multiple empty levels.
This creates a dramatic spike that looks like a market breakout. The effect appears extreme on lower timeframes, especially on volatile pairs like XRP. Kraken has experienced similar incidents in the past when trading activity decreased and the order book became thinner.
Why the Wick Reversed Instantly
The instant reversion shows that no broader market move supported the spike. Real rallies need sustained buying pressure and rising volume. In this case, trading volume remained low and the price quickly returned to its previous stable level.
Other exchanges priced XRP normally through the event. That divergence confirms a technical distortion rather than genuine price discovery. Such anomalies vanish quickly when the order book refills and spreads tighten.
History Shows This Is Not New
The crypto market has seen similar spikes across several exchanges. In 2021, XRP showed brief but dramatic wick events during low-volume sessions on multiple platforms. Those spikes also came from order imbalances, not organic demand.
These events highlight structural weaknesses that appear when liquidity becomes fragmented. The Kraken wick fits the same pattern and reflects the ongoing challenges of managing depth in fast markets.
Lessons for Traders and Analysts
Flash wicks can trigger alerts, stop-losses, or liquidation events. Traders should confirm unusual moves across multiple exchanges before reacting. Using weighted indices reduces the effect of single-exchange distortions.
Risk controls should consider the possibility of errant candles during thin trading sessions. Understanding order-book dynamics can also prevent emotional responses during anomalies.
A Reminder of Crypto’s Fragile Microstructure
The unusual price spike underscores the importance of liquidity in price stability. XRP never traded near $90 across the market. The chart only reflected a temporary imbalance on one platform. Events like this remind traders that single-exchange prints can be misleading.
Careful verification remains essential in a market where thin liquidity can create extreme but meaningless spikes.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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