Ripple Disposes XRP Tokens Worth $78 Million: Price Impact
Ripple sold 150 million XRP tokens worth $78 million at an average price of $0.52 per token.
The voluminous sale follows the company’s reservation of 400 million XRP tokens worth $208 million for a June sell-off.
Ripple Sells 150 Million Chunk From June Reserves
Ripple has sold 150 million XRP tokens worth $78 million at current rates, constituting 0.25% of the XRP market capitalization. It comes only days after the company transferred 3 billion XRP tokens, worth nearly $1.5 billion, in a series of transactions within 30 minutes from its escrow wallet.
This unorthodox move has sparked concerns about a potential price impact, as history has shown that Ripple’s escrow activities can influence the XRP price. The concerns are worsened by speculation that Ripple may be preparing for its largest monthly XRP dump since 2017.
“Supply shock causes XRP to dip,” says Coach K Crypto in a post on X.
Read More: How To Buy XRP and Everything You Need To Know
However, the altcoin’s price remains unaffected. According to BeInCrypto data, Ripple’s native asset is trading at $0.51, losing 1,26% in the last 24 hours in line with the broader market trend.
XRP Price Outlook
XRP is trading with a bullish bias on the one-day timeframe as it maintains higher lows. However, this outlook is under threat as the price barely holds above the ascending trendline. A breakdown of this support level and effectively flipping into resistance could provoke panic selling.
Based on the outlook of the Relative Strength Index (RSI) below the signal line, bears could recover the XRP market. It suggests that the selling pressure is strengthening and that the price may continue declining soon. Traders often use this signal to consider selling or taking a short position on the asset.
The Parabolic Stop and Reverse (SAR) indicator reinforces this outlook by trailing the XRP price from above. As long as this price-tracking indicator overshadows the price, the market will remain bearish.
With the RSI still below the mean level of 50, the bears have the upper hand, and a breakdown may be imminent for the Ripple price. A loss of support due to the ascending trendline could put XRP on a cliff, with the possibility of rolling over to provide another buying opportunity at the $0.5000 psychological level.
In a dire case, the fall could extend as low as the $0.4784 support, denoting an 8% fall below current levels. If this level fails to hold as support, the XRP price could slip through to $0.45000; levels last tested on April 13.
On the other hand, if the ascending trendline holds as a support floor, the Ripple price could push north. A stable candlestick close above $0.5432 would make XRP attractive to buy and invalidate the bearish thesis by forming a higher high. In a highly bullish case, the price could extend to the $0.6500 threshold.
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