Ripple’s Sales of XRP Inflicting Downward Price Pressure: Multicoin Capital

Libra Coin News
Fri, 08/23/2019 - 19:30
Alex Dovbnya
Ripple is under intense pressure for aggressively selling its XRP tokens, thus stifling any price growth
Cover image via 123rf.com
Contents

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.

Related
Trading Legend Peter Brandt Predicts More Pain for Ripple's XRP, Bitcoin Cash, and Litecoin

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.”

Related
Ripple's XRP Price Tanks by More Than 60 Percent on Beaxy Exchange. Here’s Why

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.

Image by fxstreet.com

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.       

Image by coin360.com

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.


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