The so-called “September Effect,” popular in the stock market, is apparently affecting the cryptocurrency market, with an already negative price performance. In this context, Ripple is preparing a larger token dump this month, with 350 million XRP in its treasury account.
On September 1, Ripple unlocked 1 billion XRP at a nominal value of $570 million and reserved 200 million tokens for this month’s sales in its treasury account labeled as ‘Ripple (1)‘ by XRPScan. Finbold reported both activities as usual, covering Ripple’s monthly dumps.
However, on September 6, the company added 150 million more XRP to ‘Ripple (1)’, hinting at a potentially larger sell-off. The same pattern happened in June when Ripple sold 400 million XRP for its largest monthly dump ever.
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This time, in particular, the extra tokens came from ‘Ripple (29)‘, an account currently holding 1.71 billion XRP. After sending the 150 million tokens to Ripple’s selling address, the billionaire account sent 100 million XRP to ‘Ripple (52)‘.
rMQ98K56yXJbDGv49ZSmW51sLn94Xe1mu1 assets. Source: XRPScan / Finbold
XRP price analysis: Ripple dumps and the ‘September Effect’
In the meantime, XRP trades at $0.544 in a consolidation zone since the start of 2024. As previously reported by Finbold, Ripple has already sold over 2 billion XRP year-to-date, an activity that pressures its price.
This recent move suggests the company may expect further downside potential in September – victim or not of the “September Effect.” Looking for more insights on this phenomenon, Finbold collected historical data from TradingView since 2014.
Overall, September has been a negative month for XRP in the last ten years, with five losing years. Only 2016, 2018, and 2022 had positive monthly results, while 2019 and 2023 were neutral. Bitcoin (BTC), for example, has been highly affected by the “September Effect.”
If this pattern repeats, 2024 could result in a loss in September from its opening price, and Ripple could be preparing for it with a larger-than-usual dump of up to 300 million XRP.
Ripple support Kamala Harris
As things developed, Ripple also surprised the market by declaring public support for Kamala Harris during the United States presidential election. The move shocked many market participants, considering Harris has shown hostility toward cryptocurrencies.
Colin Wu explained in a post on X that the support happened in the form of a letter. Ripple co-founder, Chris Larsen, signed this letter with 88 other business leaders.
Interestingly, Donald Trump has recently regained his popularity on prediction markets, as Finbold reported.
XRP traders and investors will now closely watch Ripple’s selling activities and political developments, as both could impact the token’s price.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
