Ripple has once again stirred up concerns within the XRP community with its recent XRP sale. The sale of 150 million XRP tokens on June 7 adds to the ongoing bearish outlook for the cryptocurrency. This sale is part of the 1 billion XRP tokens that were recently unlocked as part of Ripple’s monthly escrow unlock, scheduled to continue until 2027. The community is questioning the impact of such large sales on the market and the potential for price suppression by Ripple.
The sale of $150 million worth of XRP tokens contributes to the negative sentiment surrounding XRP in the market. Despite claims that Ripple’s sales have no direct impact on exchange prices, the increase in circulating supply could lead to significant price declines. The injection of more XRP tokens into circulation creates a supply shock, which often results in a downward pressure on prices. This comes at a time when XRP is already one of the worst-performing crypto assets of the year, with a YTD loss of over 18%.
While XRP’s price action remains lackluster, some crypto analysts are optimistic about the future of the cryptocurrency. Analysts like Javon Marks have highlighted the potential for a price breakout and a significant uptrend for XRP. Marks pointed out a Hidden Bullish Divergence setup on XRP’s chart, suggesting that a similar setup in the past resulted in a price increase of over 63,000% in less than a year. This has led to speculation that XRP may be on the brink of a significant price rally.
Amidst the concerns over Ripple’s XRP sales, it is crucial to note that not all transactions are aimed at suppressing prices. The recent movement of 3 billion XRP tokens across different wallets was explained by analyst Michael Nardolillo as internal movements and escrow re-lockups. While these large-scale transactions may raise eyebrows, they are not necessarily indicative of malicious intent by Ripple.
Ripple’s recent XRP sale has reignited concerns within the XRP community and added to the bearish sentiment surrounding the cryptocurrency. The increase in circulating supply and the history of price suppression theories further compound the negative outlook for XRP. However, optimistic analysts continue to see potential for a price breakout and a significant uptrend in the near future. The impact of Ripple’s actions on the overall crypto market remains to be seen, but it is clear that XRP’s future trajectory is closely tied to the company’s strategic decisions.