Understanding Ripple's XRP Sales: A Guide for Investors

Understanding Ripple's XRP Sales: A Guide for Investors

AltcoinsEconomy

By Jakub Lazurek

23 Feb 2024

2 min read

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Ripple's strategic XRP sales impact market, raising investor caution on future moves

Ripple, the largest holder of XRP, manages over 45 billion tokens. Each month, it strategically sells a significant number of XRP, with February's operations still in progress. Currently, over 40.70 billion XRP are in escrow, not yet circulating in the market. Ripple has access to more than 5 billion XRP as liquid assets, available for sale at any moment. In February, Ripple unlocked 1 billion XRP from escrow, relocking 800 million for future release. The company's treasury has sold 260 million XRP this month, which is 60 million more than the expected monthly increase. An additional 100 million XRP came from an inactive wallet, boosting the treasury.

The question remains: Will Ripple sell more XRP this month? The data mentioned only includes sales from one treasury address, 'Ripple (1)'. The company may have other selling channels not covered in this summary. So far, the 260 million XRP sold equals $140.40 million, based on the current price is around $0.54 per XRP. With 40 million XRP still unused from the extra 100 million received on February 11, a further sale this month is likely. Ripple also can sell billions in other controlled addresses, as seen in recent activities. XRP's price dynamics amid Ripple's selling show an 8% increase since February 1, despite a general downtrend from July 2023. The price faces a short-term decline following the February 20 sell-off.

In summary, Ripple's selling activities' direct impact on XRP's price is difficult to gauge, but they do introduce supply increases and selling pressure. These can lead to temporary price drops if buying demand doesn't keep up. Investors should be cautious, paying close attention to large-scale transactions for effective risk management and making informed decisions.

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