about two days ago, on-chain data from Whale Alert revealed a significant transfer of 250 million XRP ($122.5 million) from a Ripple-affiliated wallet to an unknown address. This transaction coincided with a decline in XRP’s price.
On that day, XRP broke above $0.5 for the first time since June 18 after multiple attempts. However, just like it did on June 18, it fell below that level and has failed to regain it since.
At the time of press, XRP is priced at $0.4848, showing a 1.12% decline over the past 24 hours. The price movement reflects a broader market downturn that has impacted various digital assets.
Read Also: Hundreds of Millions of XRP Moved by Binance Sparks XRP Price Resurgence
Whale Alert listed the recipient address as unknown, but Bithomp shows that Ripple activated it in October 2023. This suggests a pre-existing relationship between the two addresses. Furthermore, the recipient address has exhibited activity throughout June, with outflows totaling 219.66 million XRP to various destinations.
The wallet has received a total of 400 million XRP from Ripple this month, including the latest transfer which occurred less than an hour after the most recent outflow of 50,000 XRP. The recipient’s wallet currently holds a balance of 270.95 million XRP. The sending Ripple wallet currently has a remaining balance of 275.99 XRP.
Whale transactions involving Ripple-affiliated wallets often trigger speculation about a potential selloff. Additionally, some investors have historically criticized Ripple for its XRP sales strategy, which involves releasing 1 billion XRP from escrow monthly. Out of this billion, 800 million are re-locked, while the remaining 200 million are used to cover Ripple’s operational expenses.
A significant portion of the XRP community blames this sales strategy for XRP price suppression. However, the company has always emphasized the importance of the escrow releases and is as transparent to the public as possible about XRP sales.
Read Also: Large XRP Whale Transfer On Major Korean Exchange Sparks Speculation
Responding to some of these concerns, Ripple’s Chief Technology Officer, David Schwartz, acknowledged the challenges associated with reducing the company’s substantial XRP holdings. He emphasizes that selling XRP remains the primary method for achieving this goal, given Ripple’s limited options.
While the short-term price remains to be seen, the long-term health of the XRP ecosystem will likely depend on a balance between Ripple’s business needs and the expectations of XRP holders.
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 urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
An anonymous crypto analyst , renowned for his accurate predictions, has made a massive price…
Price predictions are increasingly becoming an intrinsic feature in the crypto landscape, and a famous…
In 2014, Ethereum’s Initial Coin Offering (ICO) took the world of cryptocurrency by storm, raising…
Shiba Inu is experiencing a surge in market activity, capturing attention with approximately 17 trillion…
Crypto chartist CryptoAmsterdam recently advised Shiba Inu (SHIB) investors to view every price dip as…
David Schwartz, Ripple’s Chief Technology Officer, recently highlighted significant distinctions between contracts and “reasonable reliance,”…