Ripple Sells 100 Million XRP Amid Israel Vs Iran Geopolitical Tensions - What's Up?

Ripple made an important move amid rising geopolitical tensions, deciding to sell 100 million XRP tokens on Sunday. This decision comes after escalating conflict between Iran and Israel and a subsequent decline in the cryptocurrency market. Ripple, known for its controversial positions, owns the largest stake of the XRP token, and its monthly sales have the potential to impact the price of the asset.

In April, Ripple unlocked 1 billion XRP tokens, a routine action that occurs on the first day of every month. Next, the company transferred 200 million tokens to its Treasury account labeled 'Ripple (1)' in XRP Scan.

However, this month's sales were different from the usual pattern, as they started later than expected, usually within the first seven business days. Additionally, Ripple's recent activity on April 14 added to the strangeness of this month's sell-off.

Notably, half of the reserves left the 'Ripple(1)' account on Sunday morning, totaling around $50 million. The remaining 100 million XRP tokens are still inactive in the account. Ripple typically sells its tokens to these unlabeled accounts, which then deposit the funds to a known cryptocurrency exchange address.

Analyzing the impact of the Ripple token sale on the price of XRP reveals a historical trend of falling prices. Finbold's analysis of XRP's daily price charts so far this year shows massive selling coinciding with Ripple selling activity.

For example, January saw huge sales on the 7th, 16th, and 30th, totaling 246 million XRP. In February, 240 million tokens were sold on the 5th, 11th, and 20th. March saw another massive sale of XRP on the 5th and 13th.

Interestingly, XRP fell on six of the eight days following Ripple's payout, indicating a strong correlation and significant impact on the value of the asset. As a result, investors are concerned that the recent move of 100 million XRP tokens by Ripple could exacerbate XRP's downward trajectory. These concerns are compounded by broader market unrest due to geopolitical tensions, with XRP currently trading at $0.485.

Ripple still has another 100 million XRP from this month's opening, which could be sold any time within April.

So, that's an update for now. Thank you for watching, and see you in the next video.