The Reason Behind Ripple Selling 240M XRP as Price Stumbles 17%

Ripple, a prominent cryptocurrency payment company, has released an astonishing 240 million XRP from its March escrow release, aligning with a significant price downturn.

Ripple has begun selling XRP tokens for the month of March. The initial transaction occurred on March 5th when the company's wallet, designated as "Ripple 1," transferred 100 million XRP tokens to an untagged address.

Valued at $0.6305 per XRP in the market, this transaction amounted to $63 million. However, Ripple's most recent sale, which took place on March 13th, surpassed this figure significantly.

A Substantial XRP Sale Event

On March 13th, Ripple transferred 140 million XRP, valued at over $94.5 million, to an external address. These transactions collectively indicate that the payment firm has offloaded over $157 million worth of XRP in less than a fortnight.

Impact on XRP Price

Significantly, the market value of XRP experienced volatility on the days coinciding with these sales. Notably, on March 15th, XRP witnessed a decline of over 17%, dropping from a high of $0.6685 to a low of $0.5502. Similarly, the price of XRP plummeted from above $0.7 to $0.6727 during Wednesday's Ripple sales.

According to Crypto Basic, XRP has managed to partially recover from the price dip, reclaiming the $0.60 and $0.61 price levels at the time of reporting, with the cryptocurrency currently trading at $0.6133.

A Fx Empire report says that when the selling pressure on a declining asset diminishes by such a considerable margin, it serves as a strong indication that the market has likely reached a turning point in its trend.

Consequently, savvy traders may interpret this as a signal to potentially re-enter the market or hedge their short positions. Such a scenario could pave the way for a positive start to the upcoming week for the price of XRP.

Noteworthy Escrow Trends

This occurrence mirrors past events. In February, Ripple successfully released 600 million XRP from escrow, while the remaining 400 million tokens faced a similar fate. The company managed to complete the escrow execution by unlocking the remaining 400 million XRP on February 25th.

Looking ahead, the crypto community anticipates another escrow release later this month, akin to February's proceedings.

Photo: Kanchanara / Unsplash

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