crypto for all
Join
A
A

Panic Wave In Crypto: Ripple Is About To Trigger A Devastating Sell-off!

Mon 04 Nov 2024 ▪ 4 min read ▪ by Evans S.
Getting informed Altcoins

The cryptocurrency market is holding its breath: Ripple has just announced a sale of 470 million XRP, its largest liquidation in seven years. And to say the least, this decision has sent shivers through the crypto community. In the context of judicial tensions with the SEC and with the upcoming U.S. presidential election, Ripple seems to have a lot riding on this. Investors are wondering if this massive sale will trigger a cascade of consequences for the XRP price, or if Ripple is preparing a strategic masterstroke.

Crypto Ripple

Ripple breaks new ground: a massive sale that shakes things up

Usually, Ripple operates like a Swiss clock, selling about 200 million XRP each month, part of the 1 billion unlocked through its escrow account. But this month, Ripple has shaken up its own model by reserving not 200, but 470 million XRP for sale.

A decision that raises eyebrows! Could this be a signal of strategic repositioning or simply an urgent need for liquidity in the face of its ongoing legal battle with the SEC?

With this sale, Ripple is not just injecting liquidity: it is causing a shockwave in investor sentiment.

An operation of such magnitude could well influence the price of XRP and increase volatility. And of course, investors, as nervous as cats in a storm, do not particularly appreciate this kind of surprises. Some see it as a risky strategic maneuver, others a potential tsunami for the price of XRP.

XRP under pressure: between volatility and uncertainty

Past experiences remind us that Ripple is not a stranger to massive sales, but the impact is rarely neutral.

Last June, a sale of 400 million XRP caused the price to drop by nearly 20% in one week! This time, with 470 million tokens ready to be circulated, analysts worry about an even more violent domino effect.

Investors are asking: Is Ripple really trying to destabilize the market, or to assert its place in the crypto world despite the obstacles? For Ryan Lee, Chief Analyst at Bitget Research, the future is clear:

XRP is largely a product of previous cryptocurrency cycles. Its lack of innovation and frequent legal entanglements have led to disappointment among large holders and waning attention from investors. If XRP cannot resolve its legal issues or deliver innovative applications, its future market performance remains bleak.

At the same time, the lawsuit with the SEC adds an additional dimension to this sale. This legal battle, closely followed by the entire crypto sphere, could have repercussions far beyond American borders. Ripple seems to be sending a bold message: despite pressures and uncertainties, it continues its expansion, even if it stirs trouble among XRP holders. However, institutional investors are turning their backs on it.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.



Join the program
A
A
Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.