2024-05-15
Ripple, the company with the largest holdings of XRP, recently conducted a sale of 150 million tokens, amounting to $75 million.
This sale accounted for approximately 0.25% of XRP's total market capitalization, which is currently valued at around $28 billion.
Before this sale, Ripple had released 1 billion XRP tokens at the beginning of the month.
These tokens were initially locked in monthly escrows until 2027.
Out of the total, 200 million tokens were allocated to Ripple's treasury account, while the remaining 800 million were placed in new escrows.
The sale was carried out through Ripple's treasury account, labeled as "Ripple (1)," on the XRP Ledger explorer XRPScan.
The tokens were transferred to an unlabeled account known as "rP4X2…sKxv3."
Introducing these new XRP tokens into circulation could potentially add inflationary pressure and increase XRP's annual inflation rate beyond 4%.
Following the release, the destination account kept 50 million XRP, while 100 million tokens were sent to an address associated with sales on the market.
If this trend continues, the additional 150 million XRP could potentially impact the price of XRP in the spot market, exerting downward pressure.
Currently, XRP is trading at $0.5 per token, having experienced a 5% drop in the past week amid a broader correction in the cryptocurrency market.
According to a cryptocurrency analyst cited by CryptoGlobe, there are indications of a potential significant price increase for XRP.
The analyst points to a symmetrical triangle pattern on the cryptocurrency's weekly chart, suggesting a potential breakout.
XRP has been trading within this triangle for several years, indicating a battle between buyers and sellers.
A successful breakout from this pattern could lead to a substantial upward movement for XRP, as predicted by the analyst.
In the event of a breakout, the analyst projects an initial surge towards $0.93, a level that XRP briefly touched in July 2023 following a positive development in the ongoing legal dispute with the Securities and Exchange Commission (SEC).
However, the analyst believes that XRP will surpass this resistance level and ultimately reach a more ambitious medium-term target of $1.68.
This represents a remarkable increase of over 200% from its current price level.
