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American blockchain payments firm Ripple Labs Inc. has triggered new sell-off fears after moving millions of XRP to a top exchange, as showcased by data from Whale Alerts.
Ripple Labs XRP transfer details
According to Whale Alerts' data, Ripple moved a sum of 27,700,000 XRP worth approximately $14,482,315 at the time the transfer was completed, or for an average price of $0.5223 per XRP.
Tomiwabold OlajideThough the data showed that the funds were moved from an unknown wallet, Bithomb Explorer, when probed further, showed that Ripple Labs registered the sending address with a history dating back to February 2022.
The transactions show a steady outflow from the sending wallet in what appears to be a major address that Ripple Labs uses to liquidate its offerings.
Historically, Ripple Labs favors Bitstamp a lot as one of the top exchanges through which it liquidates its holdings. While dumping XRP remains a trend, it remains to be seen if more such liquidations are on the way.
For Ripple Labs, it is not uncommon to see huge sell-offs, especially with its escrow releases once a month. While it has not categorically tagged the smaller exchange transactions for any particular purpose, permutations hold that the liquidations might be for operational and partly liquidity boosts.
Gamza KhanzadaevXRP price sentiment
The transfer is one of many whale transactions recorded in the XRP ecosystem over the past few weeks. While this is leaning toward liquidations, others have significantly helped prop up the supply of the digital currency to help stabilize its price.
This current XRP movement by Ripple comes at a time when the price is changing hands for $0.5263, down by 2.46% in the past 24 hours. XRP is at a very serious inflection point in which proponents are anticipating a mega resurgence, and this Ripple sell-off may not help the sentiment in general.
With sentiment dampened, the sell-off scare may further aggravate this outlook, but bulls might hang onto key milestones within the XRP and XRPL ecosystems as a positive catalyst to hold onto their bags some more.
Arman Shirinyan
Alex Dovbnya
Dan Burgin