XRP is one of the top winners of the past 24 hours. When asked why the crypto token is running out, a popular crypto sleuth has some answers as he recently revealed a major move by Ripple. This revelation also has the ability to end the conversations XRP price is being manipulated by Rippleconsidering that the crypto company has thus far shown that it has XRP’s best interests at heart.
Ripple is reportedly buying back around 700 million XRP
In a after on his X platform (formerly Twitter), crypto sleuth Mr. Huber that Ripple bought back approximately 700 million XRP from the open market. According to him, Ripple generally does this to keep the XRP markets stable and liquid. This attempt could explain why the token’s price has suddenly increased.
The XRP price has been underperforming recently, with many speculating as to why this might be happening. Some simply stated that the price was manipulated as there was no other logical reason to explain the underperformance, especially considering that other altcoins were making significant gains.
However, Mr. Huber had another plausible explanation for this drop, as he stated that it could be one of Ripple’s ODL customers selling their XRP tokens on the open market. It had previously reported that Ripple’s XRP sales contribute to this ODL customers have no influence on prices on the stock exchanges. However, this does happen when these customers in turn start selling these XRP tokens to retail investors.
Therefore, given the trend of XRP sales from ODL customers, Ripple could have bought back these XRP tokens to stabilize the XRP price. It is worth noting that Mr. Huber seems having concluded a massive buyback due to the drop in circulating supply of XRP. That’s what he claimed Ripple’s assets are not included in the circulating supply.
XRP recovers above $0.68 | Source: XRPUSD on Tradingview.com
XRP price underperformance is concerning
Before his revelation about Ripple’s massive buyback, Mr. Huber had expressed concern about XRP’s worrying price action. He noted that the XRP price had “literally” lost all the gains it made against the subsequent broader crypto market Ruling by Judge Analisa Torres. The judge had ruled that the crypto token in itself was not a security.
Many had predicted this legal clarity would help increase the price of XRP, and it did so in the weeks following the ruling. However, the XRP price has dropped noticeably since these gains were posted. In fact, it has become concerning since the broader crypto market has picked up so many keep wondering could be the reason for XRP’s rather relatively tepid movement.
At the time of writing, XRP is trading around $0.69, up over 7% in the past 24 hours. facts from CoinMarketCap.
Featured image from Watcher Guru, chart from Tradingview.com