Understanding Ripple’s March Movement of 200 Million XRP
In March, Ripple made significant moves by transferring 200 million XRP from its previously reserved stash. This strategic decision, worth over $465 million at prevailing market rates, could potentially apply downward pressure on the XRP price, giving an advantage to bearish market participants.
The March 1 Unlock: A Closer Look
On March 1, Ripple unlocked a substantial amount of XRP, releasing 1 billion tokens from their escrow accounts labeled ‘Ripple (26)’ and ‘Ripple (27)’. Following this, the company set aside 300 million XRP into the ‘Ripple (1)’ account, which serves as a liquid wallet for its treasury, typically preceding sales or payments.
Advertisement Banner
The Repetitive Pattern of XRP Movement
This transfer pattern is not new; it has been a consistent monthly occurrence for several years. As of March 13, mirroring previous activities, Ripple transferred 200 million XRP from the ‘Ripple (1)’ account to the address ‘rP4X2hTa7A7udDbE6wczXvPz7XZ63sKxv3’.
Remaining XRP in Ripple’s Treasury
Currently, there are still 100 million XRP remaining in Ripple’s liquid treasury reserves, which might be utilized in subsequent transactions. The data mentioned above was extracted from XRP Scan on March 14, and is publicly accessible for verification.
Will Ripple Proceed with Selling the 200 Million XRP?
The question of whether Ripple will sell the 200 million XRP moved in March remains open. Although the company does not detail each sale individually, it has shared its general sales approach. Ripple employs an On-Demand Liquidity (ODL) model, selling at market prices to interested buyers.
Continuous monitoring by Finbold, alongside analyst Vinicius Barbosa, has revealed that ‘Ripple (1)’ transfers reserved tokens to the intermediary account ‘rP4X2hTa7A7udDbE6wczXvPz7XZ63sKxv3’. From there, the XRP can be allocated to various anonymous wallets in smaller portions. Larger sums typically proceed to another intermediary account, ‘rhWt2bhRq3wiK9sQnYVmhhKb5Dr2SE32hk’, before finally reaching ‘r4wf7enWPxyHtbizyV7ZHiZi5XgwHh4Rzn’.
These tokens are then deposited into centralized exchanges such as Bitstamp and Bitso. As of this writing, these transfers are actively occurring using existing balances in Ripple-affiliated accounts.
XRP Price Analysis Amidst Token Movements
Currently, XRP is trading at $2.32, which marks a decrease of 2.52% over the past month. Since reaching a peak on March 2 at $2.93, the token has experienced a decline of nearly 24%, indicating ongoing price challenges.
Market Implications
Investors and traders are advised to remain vigilant regarding these developments, as the influx of such a significant amount of tokens into the market could exert substantial selling pressure.
“`
