Ripple Sells 240 Million XRP, Raises Concerns About Price Impact
Ripple, the cryptocurrency firm, recently transferred a total of 240 million XRP tokens to an unknown address in two separate transactions. This has caused speculation among the XRP community about whether these sales have contributed to the recent price crash of XRP. The price of XRP reached a high of $0.74 on March 11 before experiencing a significant correction.
It is worth noting that the first transaction took place on March 5, the same day that XRPโs price crashed. However, it is unclear whether Rippleโs actions directly caused this price drop. The second transaction occurred on March 13, when XRPโs price was relatively stable but still declining from its weekly high.
There have been debates within the XRP community regarding the impact of Rippleโs XRP sales on the market. Some believe that Ripple is suppressing XRPโs price with its monthly sales, while others argue that Rippleโs sales do not affect prices on crypto exchanges.
Possible Market Manipulation
The price action of XRP seems illogical considering its strong fundamentals and technical analysis suggesting a potential parabolic move. This has led to discussions about possible market manipulation. As Ripple is the largest holder of XRP, it is often the primary suspect in these discussions.
However, if Ripple is not responsible for XRPโs stagnant price action, there must be another explanation for its underperformance. Despite consistently ranking among the top 10 largest cryptocurrencies by market cap, XRP has negative year-to-date (YTD) gains.
Currently, XRP is trading at around $0.61 according to data from CoinMarketCap.
Hot Take: Rippleโs Sales and XRPโs Price
Rippleโs occasional sale of XRP tokens has always been pinpointed as one reason for XRPโs tepid price action. Once again, the crypto firmโs recent offloading of a significant amount of XRP has raised concerns about its negative effect on the crypto token.
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