Mon 15 Apr 2024 ▪
3
min of reading ▪ by
Ripple, the company behind the XRP token, sold 100 million tokens on Sunday, as crypto markets are under pressure due to the escalating conflict between Iran and Israel. This unusual sale raises concerns about the potential impact on its price.
Ripple Continues Its Monthly XRP Sales
In line with its monthly practice, Ripple unlocked 1 billion XRP from its escrow account on April 1st. 200 million were transferred to its treasury account “Ripple (1)”.
However, on Sunday, Ripple moved half of that amount, 100 million XRP (approximately $50 million), to an unknown address “rP4X2…sKxv3”, which it usually uses for its sales. This transaction, carried out outside of the usual schedule, raises questions about the company’s strategy.
An historical analysis of XRP sales by Ripple highlights a correlation with subsequent price drops. In 2023, XRP fell on 6 out of 8 occasions when Ripple proceeded with liquidations.
With 100 million XRP still available this month and the geopolitical tensions related to the Iran-Israel conflict weighing on the entire crypto market, investors fear further downward pressure on the price, currently at $0.485.
Potential Impact on Ripple’s Price
Despite this unfavorable context, many observers see a bright future for XRP as the next Bitcoin “halving” approaches, which will halve mining rewards. Historically, this event has often triggered price increases in altcoins such as XRP.
Moreover, the recent court decision estimating that XRP is not a security has reassured investors on the regulatory front. Renowned analysts predict that this cryptocurrency could retest its historical highs of $3.84 around the halving, or even climb to $5.85 by 2025, based on a consistent bullish trend.
Despite the current volatility, XRP maintains its 7th place among cryptocurrencies with a market capitalization close to $30 billion. Technical indicators and chart analysis suggest that a rebound is possible if the support at $0.46 holds.
However, a failure could drop XRP to $0.42. The coming weeks are crucial for Ripple, between market dynamics and tense geopolitical context.
Maximize your Cointribune experience with our ‘Read to Earn’ program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.
Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.