Ripple Continues XRP Sales and Creates Price Pressure

Ripple (XRP) has so far experienced a weak crypto year in 2024 in terms of price, with the price curve falling below the psychologically important mark of $0.50 over the weekend.

An analysis by Finbold that draws attention to Ripple’s handling of XRP reserves is attracting a lot of attention among investors. Based on blockchain data, the report shows that Ripple is continuing its XRP sales and has already cashed in at least 150 million XRP worth the equivalent of around $78 million in June.

Every month, Ripple automatically receives 1 billion XRP from an escrow account and this will continue for the next four years

In 2022 and 2023, however, Ripple left the allocated XRP untouched in most months. This year, the wind has changed and Ripple has sold between 200 and 260 million XRP every month. These coins were not previously in circulation and thus generate little inflation. But perhaps even more important is the direct price pressure that comes from XRP sales. Twelve Ripple sales days were counted in 2024 and on 7 of them the XRP price curve collapsed.

The issue that large-scale XRP sales could harm price development has been haunting Ripple for years. Co-founder Jed McCaleb was given 9 billion XRP when he left and sold it in tranches over almost a decade. It was not until the summer of 2022 that Jed McCaleb’s XRP account was emptied . Although rules were intended to prevent McCaleb from selling off a large amount of XRP in one go, theories about an influence on the price curve persisted.

Conclusion: XRP is stagnating – Ripple under criticism

Ripple’s XRP sales cannot be overestimated given the still powerful market capitalization of almost 28 billion US dollars, but the correlation with price pressure cannot be ignored from the charts. It is also striking that Ripple’s management has not commented further on the situation and strategies – although criticism is becoming increasingly louder on X and other networks.

Looking at the last twelve months, XRP has been treading water at prices of around 0.50 US dollars and a positive outlier after the court victory against the US Securities and Exchange Commission (SEC) has long been forgotten. How Ripple could usher in a trend reversal for XRP remains the crucial question if one wants to allow oneself to be optimistic.

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