Ripple Sells 150M XRP from July Reserves, XRP Price Under Pressure

As an analyst with extensive experience in the crypto market, I have closely monitored Ripple’s XRP reserve activity and its impact on the token’s price. The recent sale of 150 million XRP by Ripple, worth approximately $64.5 million, is a concerning development for XRP investors and could put further pressure on the token’s already declining price.

On July 9, Ripple, the company managing the XRP Ledger and holding the largest XRP stash, disposed of 150 million XRP from its hoard. This sale, valued at approximately $64.5 million, could influence market perception and potentially affect XRP’s price negatively.

July XRP Reserve Activity Breakdown

As a crypto investor, I’d interpret it this way: On the first day of July, Ripple announced the release of one billion XRP from its monthly escrow. Out of these, 200 million XRP were moved to Ripple’s treasury, while the remaining 800 million XRP were distributed into new escrow accounts. Furthermore, an additional 100 million XRP were set aside for sell-offs, bringing the total amount of XRP up for grabs to 300 million coins.

Ripple’s standard procedure for selling XRP involves transferring tokens from its labeled account named “Ripple (1)” to an unmarked account referred to as “rP4X2hTa.” This transaction results in an increase in the available supply by releasing previously unsold tokens. At present, 100 million XRP are kept in the “rP4X2hTa” account, with half of them (50 million) already moved to another unidentified account named “rhWt2bhR,” which could potentially be used for sending XRP to centralized exchanges.

As a researcher studying the cryptocurrency market, I’ve observed that Ripple’s sales are not the only factor influencing market sentiment. Whale transactions, such as the recent one reported by WhaleAlert on July 8, can also have a significant impact. Specifically, a large transfer of 35.35 million XRP, worth around $16 million, was observed from a major holder to the Bitstamp exchange.

🚨 35,350,000 #XRP (15,199,951 USD) transferred from unknown wallet to #Bitstamp
— Whale Alert (@whale_alert) July 8, 2024

The recent deal has sparked curiosity and rumors regarding possible future actions among XRP‘s large holders, especially amidst the ongoing legal proceedings with the Securities and Exchange Commission (SEC).

Price Impact and Market Reactions

The consistent sales of XRP by Ripple often lead to a drop in the token’s value. This pattern is evident as XRP tends to experience price decreases after these sales. In the year 2024, out of the 14 days when Ripple sold XRP, only five observed positive price changes, highlighting their significant market influence.

From January to June 2024, XRP has experienced negative growth in four out of the six months. Ripple has offloaded a sum of 1.676 billion XRP during this period, leading to a 3.10% expansion in the token’s total circulation. The current market price for XRP stands at $0.43, representing a 30% decrease compared to the start of the year and a 17% decline following the substantial sell-off on June 7.

Legal Battle and Market Sentiment

The ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC) continues to impact market perceptions significantly. In July 2023, a judge decided that Ripple’s methodical XRP sales did not violate the Howey Test. However, the company was found liable for selling unregistered securities to institutional investors.

As a researcher following this case closely, I can tell you that the impending court decision will significantly impact the penalty for Ripple. The Securities and Exchange Commission (SEC) is pushing for a $2 billion fine and a ban on future institutional sales, while Ripple counters with a proposed $10 million penalty. Legal expert Fred Rispoli anticipates that the final judgment could be announced as early as July 13 or by the end of the month. Rispoli’s prediction includes a penalty under $25 million without disgorgement. However, he also hints that the SEC might consider pursuing additional actions if it suspects Ripple continued violating securities laws following the filing of the complaint.

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2024-07-09 16:42