Caution: Ripple Gears Up for Largest XRP Monthly Dump in 7 Years
November has arrived, and Ripple is causing a stir in the market with its preparation for what could potentially be the largest monthly dump of XRP in seven years. As the core developer and largest holder of XRP, the company has set aside 470 million XRP for sale, equivalent to $240 million.
Since 2017, Ripple has been unlocking 1 billion XRP each month, reserving a portion, usually 200 million XRP, for selling. However, for the first time in years, the company has decided to reserve more than double the usual amount. This month, the escrows were completed within Ripple’s accounts, with 500 million XRP each in Ripple (24) and Ripple (25). Ripple (25) re-locked all of it in escrows until 2028, as per usual.
What raised concerns was that Ripple (24) only re-locked 30 million XRP within Ripple (12), and unusually sent 470 million XRP to Ripple (1), the account used for the monthly dumps. This move by the company has caused anxiety among XRP investors, as such a large sell-off could have a major impact on the token’s price.
In the past, Ripple’s largest dump occurred in June when they reserved 200 million XRP, and an additional 200 million from the idle account Ripple (35). This unprecedented sell-off led to a nearly 20% drop in the XRP price from June 1 to July 7, demonstrating the negative financial effects. This is the highest dump recorded since 2017 when Ripple implemented the escrow system.
Currently valued at $0.511, XRP has experienced a loss of 18.70% year-to-date. Remarkably, Ripple has already sold 2.576 billion XRP in 2020, with significant sales in June (400 million), September (350 million), and July (300 million).
In previous months, Ripple had only reserved the usual 200 million XRP from the escrow unlock. The additional selling pressure came from idle accounts. However, this time, in November, it is possible that Ripple will add even more selling pressure, surpassing the already record-high 470 million XRP. It’s noteworthy that this month’s activity coincides with the U.S. Presidential Election, and Ripple’s CEO, Chris Larsen, recently made a $10 million donation to Kamala Harris’s campaign.
The cryptocurrency community eagerly awaits the outcome of the election, as it is expected to have a significant impact on the market. XRP investors and traders should closely monitor Ripple’s actions in the coming days, depending on the election results.