Ripple has already sold half of the 200 million XRP reserved for its treasury, following the unlock of 1 billion tokens in January. On January 16, the company spent 80 million from the second half of the reserved tokens, which could create selling pressure on exchanges.
Notably, Ripple sent the 80 million XRP, worth $45.6 million, to the same account that previously received Ripple’s sell-offs.
‘Ripple (1)’, the company’s treasury account, sent the tokens to ‘rP4X2…sKxv3’, currently idle on this account’s balance. Interestingly, the former still has a remaining balance worth more than $26.4 million USD in 46.34 million XRP.
In this context, the payment could be routed through two other intermediate addresses before reaching centralized exchange accounts if this sell-off behaves like the most recent one reported on January 9.
XRP price analysis and the Ripple effect
Ripple’s recent sell-off of 80 million XRP significantly exceeds the 24-hour exchange volume of 1.55 million, according to CoinMarketCap. This can increase liquidity and potential downward pressure on the token’s price.
Particularly, XRP experienced a 5.35% loss in price from January 8 to January 10, right after January’s first sale.
Now, XRP trades at $0.57 per token amid uncertainties related to the SEC’s lawsuit against Ripple. It is worth mentioning that the U.S. agency filed a motion related to the company’s XRP sales.
Such large-scale disposals can cause concern among investors and holders. Essentially, the increased supply in the market may lead to a decrease in value if demand doesn’t keep pace.
This action may also signal to the market a possible lack of confidence in the token’s short-term performance, raising skepticism and potentially triggering a sell-response from other holders looking to mitigate their losses.
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