As a researcher with extensive experience in the cryptocurrency market, I have closely observed Ripple’s (XRP) selling patterns and their impact on the crypto’s price. The latest transfer of 150 million XRP tokens by Ripple is significant and raises questions about the future price trajectory of XRP.
Ripple, the blockchain payment company, has once again transferred a substantial amount of XRP tokens, specifically 150 million, from its reserves. This action, while predictable to some extent, still leaves an impressive mark and sparks debates about the potential future direction of XRP’s price.
Ripple Shifts 150M Tokens
As a researcher, I’ve come across an intriguing piece of information: On Friday, June 7, the company offloaded a significant amount of XRP tokens, specifically 150 million. This equates to a value of approximately $78 million based on the current market price of around $0.52 per token. It’s essential to note that this sale comprises a mere 0.25% of XRP’s total capitalization, currently estimated at a staggering $29 billion.
More recently, Ripple has carried out a number of comparable deals, starting early in June. On the sixth day of that month, the corporation made public the sale of a massive 1 billion XRP units from its original allocation. A significant portion of these tokens had been set aside in monthly escrows with a maturity date extending to 2027.
After this announcement, 200 million XRP were moved to Ripple’s trust account, while the remaining 800 million XRP were secured in fresh escrows. To make things more intricate, an extra 200 million XRP were deposited into Ripple’s reserve for selling from the ‘Ripple (35)’ account.
The transaction added up to a grand total of 400 million XRP. It’s also worth mentioning that after this transfer, Ripple now maintains a reserve of approximately $250 million worth of XRP in their account, as reported on Bithomp. As usual, the token transfer was executed through Ripple’s treasury account named ‘Ripple (1)’, moving tokens to the unidentified account ‘rP4X2hTa’ for selling purposes.
The procedure initiates new XRP supply by releasing previously uncirculated tokens into the market. At present, the transferred quantity is held in the ‘rP4X2hTa’ account, possibly to be dispersed to intermediary addresses like ‘rhWt2bhR’ before reaching cryptocurrency exchanges, following a trend similar to past months.
Impact On XRP Price
As a researcher studying the relationship between Ripple’s token sales and XRP‘s price, I’ve noticed a significant correlation. Each time Ripple sells its XRP holdings, there is a noticeable impact on the market. This selling pressure results in local price crashes for XRP. Analyzing historical data reveals that out of the 12 occasions where Ripple sold off its tokens this year, only five have resulted in positive price movements for XRP. Therefore, it’s essential to closely monitor Ripple’s activities to understand how their sales might influence XRP’s price trends.
In the year 2024, XRP has faced challenges in achieving consistent monthly gains, with a disappointing outcome in three out of the initial five months. This rollercoaster ride highlights the intricacy of balancing supply factors and investor sentiment within the XRP market.
At the moment of publication, XRP‘s price had dropped by 0.51% to $0.5225. Contrastingly, the digital asset’s trading volume surged by 5.13% within the past 24 hours, reaching a significant level of $1.20 billion. Despite the ongoing market uncertainty and price decrease, industry experts maintain their optimistic outlook regarding XRP’s future trend. In fact, they predict an impressive potential increase of approximately 61,400%.
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2024-06-08 02:31