Dec 13, 2024
6hTrade
Ripple has shifted its entire reserve of 200 million XRP, valued at $500 million, as the cryptocurrency XRP starts to recover from a recent crash. This substantial sell-off could potentially hinder XRP's price recovery by satisfying a large portion of current demand.
Following an exceptional rally that elevated XRP to the 3rd position by market cap, the cryptocurrency experienced a sharp correction. This downturn began last week, triggered by dismissed rumors and adverse technical indicators, causing XRP to slip to the 4th position.
Currently, XRP lags behind Tether’s USDT. In response, Ripple, the largest token holder, has begun a significant selling operation. On December 11, the company transferred all 200 million XRP reserved for December’s expenditures, heeding a prior warning from Finbold.
This move follows a recurring pattern where Ripple transferred tokens to an intermediary address, identified as 'rP4X2h(...)', for further transactions. This address also handled significant amounts from other Ripple accounts.
As of now, selling the entire 200 million XRP at the current price of $2.43 per token would net Ripple approximately $486 million.
Previously on November 29, XRP's market cap surpassed $100 billion, momentarily positioning it above Solana (SOL) in the rankings, as reported by Finbold. Shortly thereafter, it reached an all-time high market capitalization of $165.74 billion at $2.90 per XRP, briefly claiming the 3rd spot over Solana and USDT.
However, on December 4, the Relative Strength Index (RSI) indicated a potential decline for XRP, which materialized as the price fell to $2.00, mainly due to Ripple dismissing rumors related to RLUSD.
Currently, XRP's market cap stands at $138.8 billion, slightly trailing USDT's $139 billion. If XRP maintains its recent momentum, it might reclaim the 3rd spot in the cryptocurrency rankings. Nonetheless, the overall increase in the crypto market's capital could also elevate Tether’s USDT, maintaining a tight competition. Additionally, Circle’s USDC, a direct rival to USDT, is also vying for a higher position through a significant partnership with Binance.
