XRP Price Largely Impacted by Bitcoin Performance Despite Ripple\'s Periodic Sales: Expert

Every month, Ripple unlocks a total of $1 billion worth of its native crypto XRP from its escrow accounts. Although Ripple has locked 80% of the XRP tokens

Ripple’s periodic XRP sales have drawn mixed reactions within the community, with some criticizing the firm for keeping the XRP price suppressed. However, Ripple expert Chris Mickle has dismissed these allegations, highlighting several factors indicating minimal impact from the sales.

According to Mickle, Ripple strategically manages its sales to avoid flooding the market with large XRP volumes. He noted that Ripple-related XRP sales typically constitute a small fraction of the token’s 24-hour trading volume, minimizing any potential impact on its price.

Furthermore, Mickle stated that the XRP market is highly liquid and vast, with Ripple’s periodic sales being insignificant compared to the overall trading volume. He identified institutional clients and strategic investors as the primary buyers of Ripple’s XRP holdings. This strategy aims to foster long-term benefits, such as increased adoption and utility, which outweigh short-term price fluctuations.

Mickle also pointed out that Bitcoin’s performance has a greater influence on the XRP price than Ripple’s periodic sales. He noted that, like other altcoins, XRP is largely correlated with BTC. However, there have been times when XRP has decoupled from Bitcoin, as reported by Crypto News Flash last week. At press time, the XRP price is again up by 8.38%, reaching the key resistance at $0.60.

On-chain data indicates remarkable growth in the XRP Ledger, with total interacting addresses and new addresses surging to their highest levels since March 2024. On Thursday, the XRP Ledger experienced the creation of 1,721 new XRP wallets in a single day, the highest number since March 30. Additionally, 47,363 individual addresses interacted on the XRP network, marking the highest level of activity since March 9. This surge highlights the growing interest and participation in the XRP ecosystem. Moreover, there has been strong whale activity around XRP, as reported by CNF.

XRP Ledger is seeing a substantial amount of both new addresses created and total addresses interacting on the network. Both are at their highest levels since March. pic.twitter.com/AIeWzwannc

— Santiment (@santimentfeed) July 18, 2024

In other developments related to Ripple, the SEC has canceled a closed-door meeting scheduled earlier this week where officials were expected to discuss key cryptocurrency issues, including the pending settlement with Ripple, as updated by CNF.

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