Ripple has once again stirred concerns within the XRP community due to its recent XRP sale. This action has come at a time when the price of XRP has been struggling, portraying a bearish outlook for the cryptocurrency. The on-chain data reveals that Ripple sold 150 million XRP tokens, equivalent to $78 million, on June 7. These tokens were part of the 1 billion XRP tokens that were unlocked as part of its monthly escrow unlock, with such unlocks scheduled to continue until 2027. Such a significant sale naturally raises worries about its potential impact on the market.
In addition to the recent XRP sale, Ripple’s unusual transactions have also caught the attention of many. The crypto firm transferred 3 billion XRP tokens, totaling $1.5 billion, across various wallets within just 30 minutes. While some may view these transactions as a cause for concern, crypto analyst Michael Nardolillo has clarified that these movements were primarily internal transfers and escrow re-lockups.
The $150 million XRP token sale by Ripple has reignited the debate on price suppression by the company. Although it has been stated that Ripple’s XRP sales do not directly influence prices on crypto exchanges, the continuous influx of XRP tokens into circulation can contribute to a negative market sentiment. The increased supply of XRP may lead to significant price declines, further impacting the already bearish sentiment surrounding the token.
The recent XRP sale by Ripple comes at a time when market sentiment towards XRP is notably bearish. XRP has been one of the worst-performing cryptocurrencies since the beginning of the year, suffering a year-to-date loss of more than 18%. Despite these challenges, some crypto analysts remain optimistic about XRP’s future potential. Analysts like Javon Marks have highlighted the possibility of a price breakout for XRP, citing a Hidden Bullish Divergence setup on the altcoin’s chart. Marks suggested that XRP could be on the verge of a significant upward movement, similar to the one it experienced in the past.
Ripple’s actions, including the recent XRP sale and unusual transactions, have raised concerns within the XRP community and impacted market sentiment towards the cryptocurrency. While challenges persist, there is still optimism among some analysts regarding XRP’s potential for a price breakout in the future. It remains vital for Ripple to address these concerns and navigate the challenges to regain confidence and stability within the XRP community.
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