This past week, the top cryptocurrencies started moving just as Bitcoin broke past the key $10,000 level.
After a long time, even XRP investors get to enjoy a rush of greens. The fourth target cryptocurrency jumped 60% in the past ten days to over $0.321 before a momentary drop on Sunday. But soon, the digital currency went back up above $0.31. Trader Scott Melker about the action XRP is seeing noted,
“This looks like the real deal. This broke the long term downtrend (black descending line) with volume… and that volume has continued to rise. Like, seriously rise.”
However, today the crypto market at large sees another round of losses that has XRP trading at $0.30, down over 4%.
Similar picture here.
Lost support, which ideally rejects as resistance now.
Reclaim and the path is open towards $0.325.
Losing $0.295 and we'll be looking at $0.271. pic.twitter.com/cJkWsSzvaN
— Crypto Michaël (@CryptoMichNL) August 4, 2020
Interestingly between February 6th and August 3rd, an additional 375 million XRP has been sold for a total value of $75 million by former Ripple CTO Jed McCaleb.
In 2020, the average amount of XRP sold per day is around 1.74 million XRP, valued at $374,200, which is an increase of 266% compared to 2019.
In 2020 so far, a total of 630 million XRP are estimated to be sold. But still, the Ripple co-founder has about 4 billion remaining in his settlement account.
This is less than half of the 9 billion XRP that he received from Ripple as part of a settlement agreement between him and Ripple when he left the company. At that time, he agreed to dump a certain amount of XRP each year on the market to avoid affecting the price of the digital asset.
So, can McCaleb crash the XRP market? According to Whale Alert, “Compared to the total trade volume per day, the amount he is selling seems insignificant.” All of his XRP sales are also cashed out directly through Bitstamp.
Similar sentiments were shared by trader Credible Crypto, who is a staunch XRP supporter, saying the amount of XRP McCaleb dumps on the market is “not enough to affect the price in any significant way.”
According to him, it is just more FUD given that the amount former Ripple CTO sold in April “was equivalent to 1/3rd of 1% of total volume traded per day.” The trader actually sees the digital asset going higher, which is up about 60% YTD.
$XRP gearing up for .35-.37 😎
— Credible Crypto (@CredibleCrypto) August 4, 2020
But not everyone agrees to this as another trader Ledger Status points out the constant sell pressure on XRP due to this. He said,
“I could care less how it affects price, though it is surely a constant strain on the sell side — pure fact. More importantly, it helps highlight how severely overpriced this coin remains to this day.”
Since 2018 high, XRP has been constantly moving down, up until this July. As a matter of fact, it has been the worst-performing top cryptocurrency in 2020 before it started rising.
The digital asset even lost its 3rd spot to Tether (USDT), and slowly even the XRP army, the “bagholders” started to feel the weight of their XRP stash.
Not to mention, the lawsuits it is defending and the question of XRP being security continues to haunt its progress.