Ripple has once again sparked concerns within the XRP community with its recent sale of 150 million XRP tokens ($78 million) on June 7. This sale is part of the 1 billion XRP tokens that were recently unlocked as part of Ripple’s monthly escrow unlock, which is scheduled to continue until 2027. The continuous offloading of XRP tokens by Ripple has raised alarm bells among investors, especially given the current bearish outlook for the cryptocurrency.
The sale of $150 million worth of XRP tokens by Ripple has reignited the debate around the theory of price suppression. While it has been claimed that Ripple’s XRP sales do not directly impact prices on crypto exchanges, the increased supply of XRP tokens in circulation can have a negative effect on the token’s price. This, coupled with XRP’s poor performance since the beginning of the year, has only added to the bearish sentiment towards the cryptocurrency.
The market sentiment towards XRP remains bleak, with the cryptocurrency being one of the worst-performing assets since the start of the year, suffering a year-to-date loss of over 18%. Despite this, some crypto analysts believe that XRP still has the potential for a price breakout and a significant upward move. Analysts like Javon Marks have pointed out a Hidden Bullish Divergence setup on XRP’s chart, suggesting a possible resurgence in the token’s price.
Ripple’s continuous sale of XRP tokens not only adds to the existing supply of tokens in circulation but also raises concerns about the market manipulation and price suppression. The movement of 3 billion XRP tokens in a short period also raised eyebrows, although analysts have explained them as internal transactions and escrow re-lockups. However, the overall impact of Ripple’s actions on XRP’s price remains a topic of debate within the crypto community.
Ripple’s XRP sales continue to be a point of contention within the crypto community. The impact of these sales on XRP’s price and market sentiment remains uncertain, with some analysts predicting a potential price breakout and others expressing concerns about price suppression. As Ripple continues its monthly XRP unlocks, the market will closely monitor the developments and their implications on XRP’s future price movements.
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