Ripple, a major player in the cryptocurrency space and the largest holder of XRP initiated the sale of 100 million XRP on Sunday, April 14. This move comes as the cryptocurrency market experiences a downturn and geopolitical tensions, particularly with the escalating Iran-Israel conflict.
The company’s sales pattern serves as a unique distinction in the cryptocurrency landscape. While many cryptocurrencies rely on decentralized mining processes, Ripple’s substantial holdings and recurring sales give it considerable influence over XRP’s market dynamics.
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This month’s anticipated XRP sell-off by Ripple deviates from the norm, as the transaction occurred later than the usual timeframe within the first week. This further underscores the unusual nature of Ripple’s activity on Sunday, April 14th. Specifically, half of the monthly XRP reserves were transferred from the ‘Ripple (1)’ account, estimated to be worth around $50 million.
As of this writing, these 100 million XRP tokens remain in the ‘rP4X2…sKxv3’ account. This aligns with Ripple’s typical pattern of moving tokens to an intermediary account before selling them on known cryptocurrency exchanges.
According to XRP’s price chart, XRP sales have historically correlated with price drops. In January, Ripple sold a total of 246.34 million XRP across transactions on the 7th, 16th, and 30th. February saw another 240 million XRP sold on the 5th, 11th, and 20th, followed by 240 million sold in March on the 5th and 13th.
Notably, XRP’s price experienced declines on six out of the eight days Ripple made these sales. This pattern indicates a potential correlation between Ripple’s selling activity and XRP’s unfavorable price trends.
The data suggests that XRP’s exchange rate may be prone to drops when Ripple sells portions of its holding. This has led to investor concerns over XRP’s performance during its XRP sales.
The current geopolitical climate, particularly surrounding the Iran-Israel conflict, has negatively affected the broader cryptocurrency market, including XRP, which trades at $0.4908 at the time of writing, according to data from CoinMarketCap. Ripple retains an additional 100 million XRP from April’s unlock, raising the possibility of further sales and more pressure on the asset’s price.
Read Also: Pro-XRP John Deaton Shares Likely Timeline For Ripple-SEC Case Final Judgement
Ripple’s monthly XRP sales are a contentious topic within the crypto community. While the company cites the need for funds to support its business operations and expand XRP’s use cases, critics argue that these sales create downward pressure on the asset’s price.
As the situation unfolds, investors will closely watch Ripple’s actions and impact on the XRP market. It’s important to note that past performances may not impact future trends.
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