Bitcoin and multiple altcoins have already witnessed amazing gains in 2019, but Ripple’s XRP cannot relate — it has so far lost $3 bln of its market capitalization.
According to Multicoin Capital co-founder Kyle Samani, the very company behind everyone’s favorite remittance token is to blame for the sluggish price action.
An aggressive selling spree
Samani claims that Ripple’s selling spree over the last three months can be directly linked to the price drop.
The company has been steadily increasing their sales of XRP over the previous three quarters, likely inflicting downward price pressure on XRP.”
He adds that “savvy investors” have been aware of this for a long time, but the narrative is only starting to break into the public consciousness.
In Q2, the company sold $251.51 mln worth of XRP, which marks a startling 48 percent increase compared to its Q1 sales of $169.42 mln.
However, Nic Carter of Coin Metrics reveals that Ripple has published inaccurate sales data “at least twice.”
I’d say it is unexpected, the amount they will release from escrow is not known in advance.”
Will Bitcoin save the day?
Speaking of Bitcoin, which could serve as a catalyst for XRP, FXStreet analyst Ken Chigbo states that its price has to surge above $11,000 in order to pull off another price rally.
On Aug. 23, the top cryptocurrency has experienced a mild recovery with its price breaking out from the recent trading range.
Coin360 data shows that Bitcoin is currently trading at $10,418.