Popular American wealth advisor Mickle addresses misconceptions around the periodic XRP sales from Ripple and their impact on XRP’s price.
Ripple, being the largest holder of XRP, is known for unlocking 1 billion XRP from its escrow accounts monthly. While 80% (800 million) of the tokens are re-locked in escrow, the remaining 20% (200 million) is periodically sold to fund the company’s operations.
Community Thinks Ripple Suppresses XRP Price
Consequently, some community members accuse Ripple of suppressing the coin’s price via these periodic sales. This was reflected in a poll created by the official X handle of the Good Morning Crypto podcast earlier this year.
In the poll, nearly 67.7% of 1,964 community members claimed that Ripple’s periodic sales suppress XRP’s price.
VOTE HERE: Are the $XRP sales by Ripple contributing to the price suppression of XRP ? 🤔💭
— Good Morning Crypto (@AbsGMCrypto) January 8, 2024
Expert Dismisses XRP Price Suppression Theories
Reacting, Mickle dispelled these allegations, highlighting multiple factors indicating that the impact of Ripple’s periodic sales on XRP price is minimal. According to Mickle, Ripple conducts its sales strategically to avoid flooding the market with huge amounts of XRP.
2/ 📊 Ripple's XRP sales are conducted in a controlled manner, ensuring they do not flood the market. The sales are a small percentage of the total XRP volume traded daily, minimizing any potential impact.
— mickle (@xrpmickle) July 17, 2024
The expert emphasized that these Ripple-related XRP sales account for a small fraction of the token’s 24-hour trading volume, thus minimizing any potential impact on price.
Mickle stated that the XRP market is liquid and vast, with Ripple’s periodic sales being negligible compared to the asset’s trading volume.
In addition, the expert identified institutional clients and strategic investors as the primary buyers of Ripple’s XRP holdings. According to Mickle, this move tends to foster long-term benefits, like increased adoption and utility, which outweigh short-term price action.
Bitcoin Performance Influences XRP Price More Than Ripple’s Sales
The expert, citing historical data, claimed that Bitcoin’s performance impacts XRP’s price more than Ripple’s periodic sales.
Like most crypto assets, XRP is correlated with BTC. The top asset’s price action usually determines the movement of the broader market. However, there have been times when XRP has decoupled from BTC, as seen over the past week.
Contrary to claims about Ripple’s suppression of XRP, Mickle asserted that the company’s efforts contribute immensely to strengthening the XRP Ledger (XRPL), positively impacting the token’s price.
Finally, the expert said while it is easier to blame Ripple for XRP’s suppression, the company’s periodic sales have minimal impact on price. Mickle added that XRPL’s ecosystem development and broader market trends are more influential than Ripple’s sales.
Meanwhile, XRP recently led the crypto rally, surging over 40% in one week, according to a Bloomberg report. At press time, XRP has witnessed a weekly growth of 29.19% and a 17.95% surge in 30 days.
Conversely, the price of XRP is down 5.62% in 24 hours to $0.5816, with its daily volume currently standing at $3.85 billion.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
