Ripple has once again raised concerns in the XRP Community after the recent XRP sale. This 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 in the chain shows that the crypto company released 150 million XRP tokens ($78 million) on June 7. These tokens were part of the 1 billion XRP tokens recently unlocked as part of its monthly escrow releasewhich will continue until 2027. As expected, this sale has raised concerns given the impact many believe it could have on the market.
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Furthermore, this sale follows Ripple’s recent unusual transactions, when the crypto company moved 3 billion XRP tokens ($1.5 billion) to various wallets in the span of 30 minutes. Crypto analyst Michael Nardolillo, however explained that these transactions mainly involved internal movements and re-blocking of escrows.
This recent sale of $150 million XRP tokens will bring the theory to the fore again price suppression by Ripple. While it has been revealed that the crypto company’s XRP sales have no impact on prices on crypto exchanges, this undoubtedly adds to the bearish sentiment that crypto investors already have towards the token.
Furthermore, Ripple’s XRP sale led to a positive supply shock, with more XRP tokens being put into circulation. Such a development usually has a negative impact on the price of a cryptocurrency and can lead to significant price drops.
It’s also worth noting that this sale comes at a time when market sentiment is trending that way XRP is just as bearish as it can be. This is partly due to the fact that the crypto token is one of the worst performing crypto assets since the beginning of the year, with a year-to-date (YTD) loss of over 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 to the upside. Crypto analyst Javon Marks recently mentioned that the XRP is about to make a name for itself if it hadn’t already.
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He made this statement while revealing that a Hidden Bullish Divergence setup had formed on the altcoin chart. He claimed that the price of XRP had increased by a wide margin 63,000% in less than a year the last time this happened. He suggested that such a move could be on the horizon again now that XRP is at its breaking point. Meanwhile, also Crypto analyst CryptoBull recently predicted that the cryptocurrency could experience a 28,900% rally and rise to $154.
At the time of writing, XRP is trading around $0.49, down more than 4% in the past 24 hours. facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com