Is Ripple Holding Back XRP from Reaching Its All-Time High?

Ripple Advances with $1.4B Stock Buyback Amid IPO Delays

Some XRP Army members believe Ripple could prevent XRP from reclaiming its all-time high of $3.84. They base this speculation on Ripple’s monthly XRP sales and the view that many long-term XRP holders might sell at this price, allegedly causing Ripple to lose retail liquidity.

This discussion started when an XRP enthusiast posted on X, prompting various community responses. One advocate argued that Ripple has made the XRP community wait so long that the company might be reluctant to let the price surge to $3.84.

Significance of the $3.84 Price Point

The $3.84 price is XRP’s all-time high, reached on January 04, 2018. Since then, XRP’s value has steadily declined and hasn’t retested this level, even during the 2021 bull market. Currently, XRP trades at $0.4933, an 87.16% drop from its ATH. Thus, the $3.84 mark is now a psychological level where many frustrated retail investors might exit the market.

Related article: XRP to $1,000? Analyst Cites JPMorgan’s Transaction Volume

However, not all community members agree. Some argue that retail investors don’t significantly contribute to XRP’s liquidity. Data from the XRP Rich List supports this view, revealing that approximately 1.75 million XRP wallets hold between zero and 20 tokens, collectively amounting to 21.27 million XRP. Around 2.42 million wallets hold between 20 to 500 XRP, collectively holding about 181.86 million tokens. In contrast, only 160 XRP wallets possess balances exceeding 6 billion XRP.

Ripple Suppressing $3.84 Could Be Self-defeating

New York-based XRP enthusiast John K expressed that Ripple suppressing XRP from reaching $3.84 would be self-defeating. Ripple holds over 40 billion XRP in spendable balance and escrow, valued at approximately $20 billion. A $3.84 price per XRP would give the company reserves of over $153 billion. Therefore, the idea that Ripple would suppress XRP due to fears of retail exits is purely hypothetical. 

Related article: XRP Poised for Significant Rally: $1.67 Target in Sight

Such price levels would significantly benefit the company, incentivizing it to pursue further gains. Additionally, this perspective overlooks that sold XRP would likely be acquired by new holders, potentially increasing the circulating tokens’ value. Moreover, XRP’s price is determined by market dynamics and is beyond the control of a single entity like Ripple. 

Even if Ripple aimed to dump all its holdings to suppress the price, this would not be achievable as most of its balance is in escrow and not readily accessible.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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