The recent sale of 150 million XRP tokens by Ripple has once again sparked concerns within the XRP community. This comes at a time when XRP’s price action has been lackluster, leading to a bearish outlook for the crypto token. The sale of these tokens, part of the 1 billion XRP unlocked as part of a monthly escrow unlock, has raised questions about the potential impact on the market.
Following the recent sale, Ripple was also involved in unusual transactions where 3 billion XRP tokens were moved across different wallets in just 30 minutes. However, crypto analyst Michael Nardolillo clarified that these transactions were primarily internal movements and escrow re-lockups. Despite this explanation, the community remains skeptical about the implications of such large transactions.
The $150 million XRP token sale has once again brought up concerns about price suppression by Ripple. While it has been argued that Ripple’s XRP sales do not impact prices on crypto exchanges directly, the continuous injection of XRP tokens into circulation adds to the existing bearish sentiment towards the token. This positive supply shock can lead to significant price declines for XRP in the future.
XRP’s unimpressive price action has contributed to the bearish sentiment prevailing in the market. With a year-to-date loss of over 18%, XRP remains one of the worst-performing crypto assets since the beginning of the year. Despite this, some crypto analysts believe that XRP still has the potential for a significant price breakout. Analyst Javon Marks pointed out a Hidden Bullish Divergence setup on XRP’s chart, suggesting a possible parabolic move to the upside in the near future.
Ripple’s recent XRP sale has ignited concerns within the XRP community regarding potential price suppression and market impact. While the crypto firm’s actions may not directly influence prices on exchanges, the continuous injection of XRP tokens into circulation adds to the bearish sentiment towards the token. As XRP continues to struggle with its price performance, analysts remain divided on its future potential, with some predicting a major breakout while others remain cautious about its outlook.
