Ripple, Crypto, Voice of Crypto
Ripple sold a large amount of XRP tokens (100 million) this week.
This sell-off happened amid a general decline in the crypto market and geopolitical tensions between Iran and Israel.
Ripple usually sells XRP tokens periodically, but this time the sale was delayed for some reason
The recipient of the 100 million XRP tokens remains unknown, and XRP is currently trying to recover from the general market decline
Amid the chaos last week, when Bitcoin declined from over $68,000 to less than $61,000, Ripple was making moves of their own.
The company behind XRP apparently liquidated a massive amount of XRP tokens, amid the crypto market's liquidation crisis and the escalating conflict between Iran and Israel.
Sell-offs like these are normal for Ripple, which sells off a significant amount of XRP periodically.
However, the question remains—why now?
As part of its routine, Ripple released around 1 Billion XRP tokens from its reserves at the start of April, and has been selling these tokens off bit by bit.
Soon after this release, the company transferred around 200 million tokens to its Treasury account, designated as ‘Ripple (1)’ on the XRPScan ledger.
Transfer to treasury account
However, instead of the usual pattern of selling off tokens within the first seven working days of the month, for some reason, Ripple delayed April's liquidation, raising questions about transparency and security.
On Sunday this week, however, Ripple made another unexpected move.
As shown by the snapshot from XRPScan below, right after the 200 million XRP sell-off mentioned earlier, Ripple sold another 100 million XRP.
Unrecognized account receiving 100 million XRP
The interesting part of this transaction is how the 100 million XRP tokens—valued at around $50 million—were transferred to an unknown account, with the address, ‘rP4X2…sKxv3’.
These tokens haven't moved so far at the time of writing, and haven't been moved to any centralized exchanges to be sold—yet.
Is this a ticking bear-bomb?
According to data from Coingecko, XRP is in the middle of a 16% decline over the last week.
However, more than this, the cryptocurrency is making a comeback, with a 4% price increase in the last 24 hours before writing.
XRP’s performance
To understand what's been going on with XRP, we can zoom out into the weekly charts, as shown below:
XRP in the charts
According to the charts, XRP appears to be in a sticky situation, as shown above.
To begin with, the cryptocurrency just broke below a symmetric triangle that had been active since June 2022.
As it stands, XRP is attempting to break above this trendline once again, and is already back at retesting it around $0.51.
However, to see any confirmation that XRP is back on track, we first have to see XRP’s price enter the symmetric triangle once again.
Moreover, we need to see the cryptocurrency break above its 99-day EMA around $0.5482 again.
If neither of these happens for XRP, the cryptocurrency could still trend further down to retest the major $0.295 support.
XRP’s price targets
While this would provide the optimal entry point for the cryptocurrency, XRP's long-term 550% rally to the $1.96 target remains on track.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.