Ripple sold 150 million XRP tokens worth $78 million at an average price of $0.52 per token.
The massive sale follows the company reserving 400 million XRP tokens worth $208 million for sale in June.
Ripple sells 150 million chunks from June holdings
Ripple sold 150 million XRP tokens worth $78 million at current exchange rates, which makes up 0.25% of XRP’s market capitalization. This comes just days after the company transferred 3 billion XRP tokens worth about $1.5 billion from its escrow wallet in a series of transactions within 30 minutes.
This unorthodox move has raised concerns about the potential price impact, as history has proven that Ripple’s escrow activities can impact the price of XRP. Concerns have been further exacerbated by speculation that Ripple may be preparing for the largest monthly XRP dump since 2017.
“XRP falls due to supply shock,” K Crypto coach posted on X.
Read more: How to Buy XRP and Everything You Need to Know
However, the prices of altcoins are not affected. Ripple’s underlying asset is trading at $0.51, down 1,26% over the past 24 hours, in line with broader market trends, according to BeInCrypto data.
XRP Price Outlook
XRP is trading with a bullish bias on a daily basis as it maintains higher lows. However, this outlook is under threat as prices rarely remain above the upward trend line. If this support level breaks and effectively turns into resistance, panic selling can occur.
According to the Relative Strength Index (RSI) forecast below the signal line, a bearish trend could restore the XRP market. This suggests that selling pressure is intensifying and prices may continue to fall soon. Traders often use this signal to consider selling the asset or taking a short position.
The Parabolic Stop and Reverse (SAR) indicator tracks the XRP price from above, reinforcing this outlook. As long as this price tracking indicator overshadows the price, the market will remain bearish.
With RSI still below its average level of 50, bears have the upper hand and a Ripple price collapse could be imminent. Loss of support from the rising trendline could put XRP on a cliff, with the potential for a rollover to provide another buying opportunity at the psychological level of $0.5000.
In a worst-case scenario, the decline could hit support at $0.4784, an 8% decline from current levels. If this level fails to hold support, the XRP price may fall towards $0.45000. Levels were last tested on April 13.
On the other hand, if the uptrend line holds as support, the Ripple price may be pushed north. A stable candlestick closing above $0.5432 makes XRP attractive to buy and forms higher highs, thereby invalidating the bearish thesis. In a very bullish case, the price may extend towards the $0.6500 threshold.
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