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Ripple’s 150 million XRP sale keeps the price under pressure amid bearish headwinds
Ripple has again raised concerns about this XRP community following the recent sell-off of XRP. This one comes in the middle XRP’s unimpressive price actionwhich continues to paint a bearish outlook for the crypto token.
Ripple sells 150 million tokens
Data on the chain Shows that the crypto firm dumped 150 million XRP tokens ($78 million) on June 7. These tokens were part of the billion XRP tokens, which were recently unlocked as part of its monthly release of the escrowwhich will last until 2027. As expected, this sale has raised concerns, considering the impact many believe it could have on the market.
Furthermore, this sale follows Ripple’s recent unusual transactions, when the cryptocurrency company moved 3 billion XRP tokens ($1.5 billion) across multiple wallets in the span of 30 minutes. However, crypto analyst Michael Nardolillo explained that such transactions were primarily internal movements and new escrow blocks.
This recent $150 million XRP token sale will once again raise the theory of Price suppression by Ripple. While it has been revealed that the cryptocurrency company’s XRP sales have no impact on prices on cryptocurrency exchanges, this undoubtedly adds to the bearish sentiment that cryptocurrency investors already have towards the token.
Furthermore, Ripple’s XRP sales lead to a positive supply shock, resulting in more XRP tokens being released into circulation. Such a development tends to have a negative impact on the price of a cryptocurrency and could lead to significant price declines.
It is also worth mentioning that this sale comes at a time when market sentiment towards XRP is equally bearish how can it be. This is partly due to the fact that the crypto token remains one of the worst performing crypto assets year-to-date, with a year-to-date (YTD) loss of more than 18%.
XRP will still be great
Despite XRP’s unimpressive price actionCrypto analysts have continued to predict that the crypto token will still have its moment where it will experience that price breakout and make a parabolic move upwards. Crypto analyst Javon Marks recently stated that XRP is about to make a name for itself if it hadn’t already.
He made this statement revealing that a hidden bullish divergence pattern had formed on the altcoin’s chart. He claimed that the price of XRP increased by more 63,000% in less than a year the last time this happened. He suggested that such a move could be on the horizon again with XRP at its breaking point. Meanwhile, also Crypto analyst CryptoBull recently predicted that the cryptocurrency could enjoy a 28,900% rally and rise to $154.
At the time of writing, XRP is trading at around $0.49, down more than 4% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com