Ripple has decided to sell 100 million XRP tokens amidst escalating geopolitical tensions, including the Iran-Israel conflict and a recent cryptocurrency market crash. Ripple, which is known for its controversial practices, is the largest holder of XRP and regularly conducts sell-offs that can impact the price of the asset. This month’s sell-off, however, had a delayed start compared to previous months. On April 14, half of the reserves were transferred out of the ‘Ripple (1)’ account, with a value of approximately $50 million. The remaining 100 million XRP tokens are still held in the ‘rP4X2…sKxv3’ account. Ripple typically sells its tokens to this unlabeled account, which then deposits the funds into known cryptocurrency exchange addresses.
Notably, the price of XRP has historically fallen when Ripple sells its tokens from the monthly reserves account. Finbold’s analysis of XRP’s daily price chart this year showed a decrease in price on the days Ripple made a sell-off. In January, there were three sell-offs totaling 246.34 million XRP. February saw three more sell-offs totaling 240 million tokens, and in March, there were two sell-offs totaling 240 million XRP. This pattern suggests a correlation between Ripple’s sales and the decrease in XRP’s exchange rate.
Given this trend, XRP investors are concerned that the recent move of 100 million tokens by Ripple could further negatively impact the performance of XRP. Additionally, the broader market is already facing challenges due to the Iran-Israel conflict, leading to a decline in the price of cryptocurrencies. Currently, XRP is trading at $0.485. It’s worth mentioning that Ripple still holds another 100 million XRP from this month’s unlock, which may be sold at any time in April.
Disclaimer: It’s important to note that the content of this article does not constitute investment advice. Investing in cryptocurrencies is speculative, and there is a risk of losing capital.