XRP Selling Off: What Does it Mean for the Market?
On June 7, Ripple, the developer and largest holder of XRP, sold 150 million XRP from this month’s reserves. This sale amounts to $78 million, representing 0.25% of XRP’s $29.25 billion capitalization at $0.52 per token.
XRP Ledger Updates
Earlier in June, Ripple released 1 billion XRP from its initial distribution, which is locked in monthly escrows until 2027. The company then transferred 200 million XRP to its treasury account and locked the remaining 800 million in new escrows.
- Ripple also added an extra 200 million tokens to the sell-off reserves, totaling 400 million XRP.
- The selling activity was initiated from the treasury account, Ripple (1), sending tokens to the unlabeled account rP4X2hTa, leading to XRP supply inflation.
XRP Price Analysis Amid Ripple Sell-Offs
It is crucial to understand how Ripple’s sales impact the price of XRP, given the supply pressure they create on the spot market. Historically, XRP has experienced local crashes following Ripple’s token sales.
- Out of the 12 sell-off days this year, only five had positive price action, highlighting the significance of tracking Ripple’s activities.
- XRP had a negative monthly performance in three of the first five months of 2024.
Monitoring XRP Performance
Currently, XRP is trading at $0.523 with an increasing supply pressure affecting its spot price. Investors should pay close attention to Ripple’s dumps in June as they could potentially impact the ongoing bull rally cycle.
Hot Take: Stay Informed on Ripple’s Activities
With Ripple continuing to sell off XRP, it is essential for investors to stay informed about the company’s actions and how they could influence the market dynamics. Keeping an eye on Ripple’s token sales and their impact on XRP’s price can help you make informed decisions in the volatile cryptocurrency market.
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