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Ripple Sparks Speculations With 150M XRP Transfer, What’s Next For XRP Price?
In a move that has become somewhat expected but nonetheless impactful, Ripple made another significant transfer of XRP from its reserves. The blockchain payments firm shifted 150 million XRP tokens today and raised speculations regarding the crypto’s price trajectory.
Ripple Shifts 150M Tokens
On Friday, June 7, the company offloaded 150 million XRP tokens. This transaction translates to a value of $78 million based on the current market price of $0.52 per token. Moreover, this sale represents 0.25% of XRP’s total capitalization, which stands at $29 billion.
Additionally, this recent sale comes on the heels of a series of similar transactions initiated by Ripple at the beginning of the month. On Saturday, June 1, the company released a staggering 1 billion XRP from its initial distribution, a portion of which was locked in monthly escrows until 2027.
Following this release, 200 million XRP was transferred to Ripple’s treasury account. Whilst, the remaining 800 million XRP was locked in new escrows. Adding to the complexity of the situation, the ‘Ripple (35)’ account contributed an additional 200 million XRP to the sell-off reserves.
This brought the total to 400 million XRP. Furthermore, after the latest transfer, Ripple how holds a reserve of $250 million XRP in that account, according to Bithomp. As per routine, the selling activity was facilitated by Ripple’s treasury account, labeled ‘Ripple (1)’, transferring tokens to the unlabeled account ‘rP4X2hTa’.
This process introduces XRP supply inflation by circulating previously untouched tokens into the market for the first time. Currently, the transferred amount remains in the ‘rP4X2hTa’ account, likely awaiting distribution to intermediary addresses such as ‘rhWt2bhR’ before ultimately finding its way to cryptocurrency exchanges, mirroring previous months’ patterns.
Also Read: Ripple CLO Questions Gensler’s Unlawful Enforcement Actions
Impact On XRP Price
One notable aspect of Ripple’s sales is their direct impact on XRP’s price, as they create significant supply pressure on the spot market. Historical data reveals a consistent trend: whenever Ripple sells its tokens, XRP experiences local crashes. Year-to-date, only five out of the 12 sell-off days recorded positive price movements, highlighting the importance of closely monitoring the company’s activities.
Furthermore, XRP has struggled to maintain positive monthly performance in 2024, with three out of the first five months ending in the red. This volatility underscores the delicate balance between supply dynamics and market sentiment within the XRP ecosystem.
At press time, the XRP price was down by 0.51% to $0.5225 on Friday. However, the 24-hour trading volume for the crypto soared 5.13% to $1.20 billion. Despite the recent selloff concerns and dip, analysts remain bullish on the XRP price trajectory. Moreover, they even expect XRP to witness a rally of nearly 61,400%.
Also Read: XRP Price Set For 61,390% Rally After Long-Awaited Breakout?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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