XRP Price Below $0.50 Following Ripple’s 250M XRP Transfer

On-chain data from Whale Alert indicates Ripple moved a significant 250 million XRP ($122.5 million) to an unlabeled address as the cryptocurrency’s price dipped below $0.50. The transaction, which occurred yesterday, involved a blockchain address linked to Ripple transferring the substantial amount to an unknown wallet.

🚨 🚨 🚨 🚨 🚨 250,000,000 #XRP (122,504,132 USD) transferred from #Ripple to unknown wallethttps://t.co/hSvEwAqyjY
— Whale Alert (@whale_alert) June 20, 2024

Wallet Details And Activity

Despite Whale Alert marking the recipient wallet as unknown, Bithomp data reveals Ripple activated it on October 2, 2023. Since its activation, the recipient address has been quite active, engaging in numerous transactions. Notably, this month alone, it has moved 219.66 million XRP to various wallets. The most recent outflow, consisting of 50,000 XRP, occurred less than an hour after receiving the 250 million XRP from Ripple.

Conversely, the wallet has also received 400 million XRP from Ripple this month, including the latest 250 million inflow. Currently, the address holds a balance of 270.95 million XRP. Meanwhile, the sending wallet now retains only 275.99 XRP following the massive outflow.

A transaction of this magnitude often raises concerns that Ripple might sell some of its XRP holdings, potentially adding further pressure on the coin’s price. Investors have frequently accused Ripple of negatively impacting XRP’s price through continuous sales. Ripple releases 1 billion XRP from escrow each month, re-locking 800 million and using the remaining 200 million to cover expenses.

Investor Reactions And Ripple’s Response

Several investors blame XRP’s underperformance on Ripple’s ongoing sales and substantial holdings. For example, Dev Null Productions exited the XRP Ledger ecosystem in March, citing Ripple’s persistent sales as their reason. Addressing these concerns, Ripple CTO David Schwartz acknowledged it is nearly impossible for the company to avoid selling XRP.

He emphasized that Ripple has limited options to reduce its large XRP holdings, with sales being the primary method. At present, XRP is trading at $0.4894, reflecting a 1.03% decline over the past day and an 8.33% loss over the month.

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Like many assets, XRP has experienced a recent downturn, falling from a 30-day high of $0.5423 to a monthly low of $0.4636.

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.