The popular cryptocurrency firm, Ripple, has once again stirred the pot within the XRP community, as it undertook a significant XRP sale amidst lackluster crypto price performance, casting a pessimistic shadow on the future of the digital token.
Reports gleaned from on-chain data illuminate Ripple’s sale of 150 million XRP tokens on June 7, amounting to approximately $78 million. This hefty sale was part of a total unlocking of 1 billion XRP tokens reserved by Ripple for its monthly escrow release, an event scheduled to continue unabated until 2027. The magnitude of this sale has naturally stirred up worries within the investor community about the impact such a sale could have on the already volatile crypto market.
Giving further fuel to the growing concerns, this sale closely follows Ripple’s bizarre series of transactions wherein the crypto firm transferred a colossal 3 billion XRP tokens, equivalent to a whopping $1.5 billion, among various wallets in the span of half an hour. Nevertheless, crypto analyst Michael Nardolillo has been quick to assuage fears, clarifying that these mammoth transactions were essentially internal transfers and escrow lockups.
Many theorists and cynics argue that Ripple’s recent sale of $150 million worth of XRP tokens might be an attempt at deliberately driving down the prices. While there is growing consensus that the crypto firm’s sales strategies do not directly impact prices on crypto exchanges, it indirectly fuels the negative sentiments investors harbor towards the digital token.
When Ripple’s XRP sales inject a substantial number of tokens into the markets, it can trigger a positive supply shock. However, such a scenario could have an adverse impact on the cryptocurrency’s price, creating the potential for severe price drops.
To add to the complexity, this large-scale selling spree by Ripple comes when the market sentiment towards XRP is at its most bearish. This is especially so given the poor performance of XRP since the beginning of this year, recording losses of over 18% year-to-date.
However, not everyone is pessimistic about XRP’s future. Despite its underwhelming performance to date, many crypto analysts hold steadfast in their belief that XRP will enjoy its time in the sun. They advocate that a significant price breakout is on the horizon for the crypto token that could potentially catapult its price exponentially.
One such expert is crypto analyst Javon Marks, who recently vouched for the impending success of XRP, suggesting that the crypto token was poised to make a significant mark in the not-so-distant future. This claim, stemming from a Hidden Bullish Divergence pattern identified on XRP price charts, was based on past evidence; the last time such a pattern emerged, XRP prices skyrocketed by 63,000% within a year. Based on this, Marks hypothesized that a similar trend might not be too far off, given the current trajectory of XRP.
Echoing a similar sentiment, another analyst, CryptoBull, forecasted a substantial 28,900% rally for XRP, with a predicted high of $154.
As of this moment, the digital token XRP is trading at a somber $0.49, a decline of over 4% in the past 24 hours according to CoinMarketCap. The road ahead for XRP seems fraught with turbulence and uncertainty, but these analysts’ faithful predictions bring hope to the crypto’s future.
