Ripple sells 150 million XRP, causing price to drop more than 14%

June 8, 2024 10:18

Bitcoin Magazine on

Ripple Labs recently increased its activity with the sale of 150 million XRP, worth $78 million, from its reserves on June 7.

This amount of XRP represents 0.25% of the $29.25 billion market capitalization, coming just days after the company transferred 3 billion XRP tokens, worth nearly $1.5 billion, in a series of transactions over 30 years. minutes from your escrow wallet.

This unorthodox move has raised concerns about the potential impact on prices, as history has shown that Ripple's escrow practices can influence XRP prices. The concerns are made worse by speculation that Ripple may be preparing for the largest monthly dump of XRP since 2017.

“Supply shock causes XRP to decline,” Coach K Crypto said in a post on X.

XRP was hit hard by the move, plunging 14% within hours of the news before recovering. At the time of writing, the token is still down more than 4% and trading at $0.50.

The bullish outlook on XRP's daily chart is under threat as the price is unable to sustain above the ascending trendline. Breaking this support and turning it into resistance could trigger a wave of panic selling.

With the Relative Strength Index (RSI) below the signal line and sliding towards oversold territory, it appears that selling pressure is strengthening and the price could continue to decline as bears disrupt the XRP market.

With the RSI still below the neutral level of 50, the bears are gaining the upper hand and XRP price has not yet been able to reverse its upward trend.