The potential for Ripple, a financial technology company, to impede XRP from reaching its all-time high (ATH) of $3.84 has sparked debate within the XRP community.
This speculation stems from Ripple’s monthly XRP sales and the assumption that a significant price increase would incentivize long-term holders to sell, potentially reducing retail liquidity.
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Psychological Barrier: The Significance of $3.84 for XRP
The $3.84 price point holds particular importance for XRP investors as it represents the token’s ATH achieved in January 2018. Since then, XRP’s value has declined steadily, failing to revisit this level even during the 2021 bull market.
According to CoinMarketCap’s data, XRP trades at $0.4938 at press time, reflecting a more than 87% depreciation from its ATH. As a result, $3.84 is considered a psychological barrier, where some investors might be inclined to exit the market due to long-standing frustration.
Varying Opinions on Retail Investor Impact
However, not all XRP community members share this concern. Some argue that retail investors do not significantly contribute to XRP’s overall liquidity. Data from the XRP Rich List appears to support this perspective. The list indicates that roughly 1.74 million XRP wallets hold between zero and 20 tokens, collectively amounting to a mere 21.37 million XRP.
Similarly, around 2.41 million wallets hold between 20 and 500 XRP, collectively contributing approximately 181.86 million tokens. Conversely, a mere 160 XRP wallets hold balances exceeding 6 billion XRP, highlighting the concentration of holdings among a small number of investors.
Potential Self-Defeat
XRP enthusiasts, like John K from New York, believe that any attempt by Ripple to suppress XRP’s price from reaching or exceeding $3.84 would be counter-productive. It’s important to note that Ripple holds over 40 billion XRP in spendable balance and escrow, valued at approximately $20 billion at the current price.
If XRP were to reach $3.84, the value of Ripple’s holdings would surpass $153 billion. This suggests that a price increase would significantly benefit Ripple, providing a strong incentive for the company to support XRP’s growth.
Furthermore, the argument overlooks the potential for XRP sold by existing holders to be acquired by new investors, potentially increasing demand and driving the price further up. It’s crucial to remember that XRP’s price is ultimately determined by market forces, not by the actions of a single entity.
Even if Ripple attempted to manipulate the price by selling its holdings, such an effort would likely be futile considering that most of their XRP is in escrow and not readily available for sale.
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The debate regarding Ripple’s influence on XRP’s price highlights the complex dynamics of the cryptocurrency market. While some community members believe Ripple’s actions could impact the price, others emphasize the role of market forces and the potential benefits a price increase would have for Ripple itself.
Regardless of speculation, XRP’s future price trajectory will depend on various factors, including overall market conditions, adoption rates, and regulatory developments.
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.
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