A Ripple-related account has recently transferred over 50 million XRP to cryptocurrency exchanges, indicating a significant sell-off.
On May 1, Ripple released 1 billion XRP from its initial distribution, with the tokens locked in monthly escrows until 2027. The company sent 200 million XRP to its treasury account and locked the remaining 800 million in new escrows.
After receiving the 150 million XRP this month, Ripple’s destination account rP4X2…sKxv3 distributed some tokens to different unlabeled accounts.
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A Ripple-related address, identified as r4wf..Rzn, has dumped 56.01 million XRP on exchanges in the last 24 hours, intensifying bearish sentiments.
The transactions included nearly 30 million XRP to Bitso and 26 million XRP to Bitstamp. This added selling pressure has contributed to the current price decline of XRP.
On-chain data, highlighted by Whale Alert, suggests concerns about the performance of XRP, which is the 7th largest cryptocurrency by market capitalization.
The first transaction, which occurred on May 23, moved a staggering 30 million XRP tokens to the Bitstamp crypto exchange, valued at $15.4 million at the time.
Shortly after, the second transaction transferred exactly 25 million XRP tokens to the Mexico-based exchange Bitso, worth $11.4 million at the time. The specific exchanges involved add to speculations about the reasons behind the action.
The Luxembourg-based exchange Bitstamp has received significant amounts of XRP over recent months. Bitso Exchange has also seen large inflows of XRP following its partnership with Ripple.
This distribution pattern suggests that these accounts are likely to continue transferring Ripple’s XRP to several centralized exchanges for sell-off.
Such actions could increase supply pressure on the spot market, potentially impacting XRP’s price.
XRP price analysis
Ripple’s sell-offs can significantly impact the token’s price by introducing more tokens into circulation, causing supply inflation. Over the last 24 hours, XRP has seen both gains and losses, but as of press time, it was trading at $0.5358, up 0.14% over the past day.
Despite this, the Relative Strength Index (RSI) stands at 51, indicating a neutral market stance where either bulls or bears could potentially take control.
Ripple’s monthly token distribution and subsequent sales are closely watched by the cryptocurrency community, as these actions can significantly influence XRP’s market dynamics
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
