Ripple, the blockchain giant behind XRP, made waves in the cryptocurrency market on June 7 by selling 150 million XRP tokens worth $78 million at the price of $0.52 per token. This transaction represents 0.25% of XRP’s total capitalization of $29 billion. This sale is part of a series of transactions Ripple initiated earlier this month.
On June 1, Ripple released 1 billion XRP from its initial distribution, with a portion locked in monthly escrows until 2027. Of this release, 200 million XRP was transferred to Ripple’s treasury account, while 800 million XRP was locked in new escrows. The ‘Ripple (35)’ account added another 200 million XRP to the sell-off reserves.
With these transactions, Ripple’s reserves grew to 400 million XRP. Following the latest transfer, Ripple now holds a reserve of 250 million XRP in the ‘Ripple (35)’ account, according to data from Bithomp. The selling activity was facilitated by Ripple’s treasury account, labeled ‘Ripple (1)’, which transferred tokens to the unlabeled account ‘rP4X2hTa’.
Impact of Recent Ripple Token Sales
These sales have increased the XRP supply by introducing previously untouched tokens into circulation. The transferred amount remains in the ‘rP4X2hTa’ account, likely awaiting further distribution to intermediary addresses before reaching cryptocurrency exchanges, following previous patterns.
XRP’s token sales have historically impacted prices, often leading to local price crashes. Historical data indicates that XRP recorded positive price movements on only five of the 12 sell-off days. Conversely, the remaining seven days saw local price declines.
XRP has struggled to maintain positive monthly performance in 2024, with three of the first five months ending in red. Recently, XRP experienced a notable decline and is trading at $0.4997—a 5.5% drop from the previous day. The market cap now stands at $27 billion, with a 102% surge in trading volume to $2.3 billion, indicating increased activity despite the price drop.
Investors are closely monitoring the $0.5 support level for XRP. If the market sustains this level, the price could climb to $0.55 within the week, potentially paving the way for XRP to reach $1 soon after. However, if bearish pressure increases, XRP might drop to $0.48, and further declines could push the price to $0.45, indicating a significant market pullback.
Technical indicators are giving mixed signals for XRP. The Relative Strength Index (RSI) remains at 37, moving downwards and suggests a potential near-term price increase. The Awesome Oscillator (AO) at -0.0072 shows bearish momentum, primarily red histogram bars that indicate increased selling pressure.
The MACD indicator also shows bearish momentum, with the MACD line below the signal line, pointing to a continued downward trend. The Average Directional Index (ADX) is 19.60, suggesting a weak trend overall. These indicators underscore the uncertainty and volatility currently surrounding XRP’s market performance.
