XRP Investors Concerned as Ripple Moves 150 Million XRP from Reserves, Leading to Price Drop
Worries are mounting among XRP investors as Ripple transfers an additional 150 million XRP from its reserves, resulting in a 6% decrease in price.
Over the past 24 hours, a total of 410,239,560 XRP ($213 million) has been moved to and from various exchanges, including Ripple, Binance, Coincheck, Bitstamp, and Bitso.
Ripple Labs is back in the spotlight after transferring a massive 150 million XRP ($78 million) from its reserves, fueling existing investor concerns. In a move reminiscent of June 1st, the blockchain company released 1 billion XRP from its initial distribution. Following this unexpected transfer, 200 million XRP ($104.1 million) was sent to Ripple’s treasury account (Ripple 1) from the Ripple 24 wallet.
On the same day, another 200 million XRP was transferred from the dormant wallet (Ripple 35) to the Ripple 1 account, bringing the total to 400 million XRP. According to Bithomp, Ripple now holds a reserve of 250 million XRP.
The recent transfer of 150 million XRP to an external destination indicates a cashout transaction, with more outbound XRP transactions expected from unidentified wallets in the coming days.
Further research reveals that Ripple is not the only entity conducting significant XRP transfers. According to Whale Alert, a Binance wallet moved 26,284,136 XRP ($13.75 million) to an unknown wallet on June 7th at 07:00 UTC, following reports from Crypto News Flash about 218 coins being shuffled in just 24 hours.
Significant XRP movements were also observed on other exchanges, such as Coincheck, Bitstamp, and Bitso, with a total of 410,239,560 XRP ($213 million) being transferred in the last 24 hours involving Ripple Labs, Binance, Coincheck, Bitstamp, and Bitso.
Ripple’s intentional release of XRP is seen as a strategic move to create supply pressure on the spot market. Analysts note that whenever Ripple sells its tokens, XRP tends to experience a price drop. Despite facing a bearish trend, analysts remain optimistic about XRP’s future potential, anticipating a breakout from a multi-year symmetrical triangle pattern.
Analysts predict a significant surge in XRP’s price, with some expecting the asset to reach $10 this year. At the time of writing, XRP is trading at $0.49, down 6% in the last 24 hours and 21% year-to-date.