By George Ward
Ripple’s XRP Sell-Off
The transfer of substantial XRP holdings to major exchanges Bitstamp and Bitso has raised eyebrows within the digital asset space. Per Whale Alert, the transactions, totaling 51.6M XRP tokens, were from Ripple Labs despite originating from an anonymous wallet.
What’s intriguing about these transfers is their correlation with a significant 5.11% decline in the XRP price, signaling a considerable sell-off.
Whale Alert’s Data And Transfers
According to Whale Alert, the undisclosed wallet executed two large volume XRP transactions: 26.2M XRP to Bitso and 25.4M XRP to Bitstamp. The total XRP sold is valued at approximately $31.7 million based on the current XRP price, according to Coingecko.
Surprisingly, the price of XRP declined by 5.11% (shifting from $0.65098 to $0.61576) during the period this massive sell-off was taking place. Notably, XRP started this week with a sharp 12% drop in value after prominent fund manager BlackRock dispelled scam rumors that it was preparing to launch an XRP-based ETF.
XRP price declined by another 10% following reports that a case involving a fraudulent XRP ETF filing had escalated to the U.S. Department of Justice. Interestingly, the fraudulent XRP ETF filing case caused a spike in memecoins’ price, hinting at the potential high demand among traders and investors for such an exchange-traded fund.
Linking Ripple With The Massive XRP Sell-Offs
An analysis by the XRP-focused explorer, Bithomp, unearthed a link between the transferring wallet and Ripple. However, the Bithomp analysis pointed to a different motive, explaining that the sell-off was to boost Ripple Payments’ liquidity supply rather than a direct conversion to fiat to bolster Ripple’s balance sheet.
Previously known as On-Demand Liquidity (ODL) before its rebrand earlier this year, Ripple Payments operates within RippleNet, with XRP as the primary currency across more than 70 countries. During the recent annual Swell event, Ripple CEO Brad Garlinghouse revealed that this system facilitates rapid transactions without relying on prepaid accounts.
Based on his explanations, the sell-off indicates a strategic ploy by Ripple rather than a straightforward divestment of XRP holdings.
XRP’s Price Can’t Reach 3 Digits Soon – Morgan
Despite intense speculation on social media that XRP’s price would soon trade at three figures, a prominent XRP supporter, Bill Morgan, remains doubtful. In a detailed analysis, Morgan examines the complex factors influencing XRP’s price, particularly after the SEC v Ripple legal battle.
Contrary to the exuberant optimism reverberating in particular market segments, Morgan identifies a consistent trend in XRP’s price movements. He said its price often mirrors the trajectory of Bitcoin (BTC) and occasionally exhibits vulnerabilities against the market leader, debunking the notion of an independent price surge.
Morgan buttressed his analysis using market indicators and concluded that it is unlikely that XRP’s price would reach triple digits—be it in the short, medium, or long term.