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Ripple sells 150 million XRP tokens and sparks price debate
Ripple sold 150 million XRP tokens worth $78 million at an average price of $0.52 per token.
The massive sale follows the company reserving 400 million XRP tokens worth $208 million for a June fire sale.
Ripple sells 150 million pieces from June reserves
Ripple sold 150 million XRP tokens worth $78 million at current rates, which makes up 0.25% of XRP’s market capitalization. It comes just a few days after the company moved 3 billion XRP tokensworth nearly $1.5 billion, in a series of transactions within 30 minutes of 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 price of XRP. The concerns are compounded by speculation that Ripple could be preparing for its biggest monthly yet XRP Dumps since 2017.
“Supply shock causes a decline in XRP,” says coach K Crypto in a send on X.
To know more: How to buy XRP and everything you need to know
However, the price of the altcoin remains unchanged. According to BeInCrypto dataThe native Ripple asset is trading at $0.51, losing 1.26% over the past 24 hours, in line with the broader market trend.
XRP Price Outlook
XRP is trading in a bullish bias on the one-day time horizon as it holds higher lows. However, this outlook is in danger as the price barely holds above the ascending trend line. A break of this support level and an actual move to resistance could result in panic selling.
Based on the outlook of the Relative Strength Index (CSR) below the signal line, bears may reclaim the XRP market. This suggests that selling pressure is strengthening and that the price may continue to fall soon. Traders often use this signal to consider selling or opening a short position on the asset.
Parabolic stopping and reversing (HRH) reinforces this perspective by following 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 mid-50 level, bears have the upper hand and a collapse may be imminent for the price of the ripple. A loss of support due to the ascending trendline could throw XRP over a cliff, with the possibility of rolling over to provide another buying opportunity at the psychological $0.5000 level.
In extreme cases, the collapse could extend to the $0.4784 support, denoting an 8% drop below current levels. If this level fails to act as support, XRP price could slide to $0.45000; levels last tested on April 13.
On the other hand, if the ascending trendline acts as support, Ripple price may push northward. A stable candle 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 mark.
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