xrp cryptocurrency price

XRP price likely to reverse as 250 million tokens hit exchange wallets

Ripple flows out of exchanges as Bitcoin and Ethereum inflow spikes
Written by publisher team

  • XRP has been trading within a narrow range since July 29Without significant action in the ongoing SEC case.
  • The large volume of XRP inflows into the exchanges observed over the past two days indicates a bearish outlook.
  • Meanwhile, Jed McCaleb, former chief technology officer of Ripple, continues to dump a large number of tokens.

XRP price chart is quiet, mainly due to indecision in the SEC v. Ripple. The overall FX market has seen an extended rally, but traders have a bearish view on the sixth largest cryptocurrency by market capitalization due to the stalled uptrend.

250 million XRP transferred to Bitstamp

According to Whale Alert, 250 million XRP was transferred from an unknown wallet to Bitstamp on August 3, 2021 at 15:28 UTC. The conversion sent warning signals across the board as it could lead to higher selling pressure. Traders remain cautious given the growing number of tokens now sitting on the exchanges.

Interestingly, Ripple Labs transferred 182.3 million XRP from its escrow account to the wallet of former CTO Jed McCaleb in a planned settlement. Although this is part of the routine for the distributed ledger company, a total of 500 million XRP has been unlocked from escrow, and it has raised flags in the crypto community.

Previously, big openings were followed by a massive influx of tokens to crypto exchanges and a subsequent drop in the price of XRP. Given McCaleb’s history of selling XRP in large volumes, traders are concerned about a drop in the altcoin’s price.

XRP price noticed a sudden uptrend following SEC v. Ripple; However, the excitement is short-lived, and the price is range-bound once again.

The altcoin price recently approached a retest of the high of $0.785, but it is now undergoing a correction. The downtrend is expected to continue for a long time as the opening of 500 million XRP may lead to an increase in inflows to cryptocurrency exchanges and create more selling pressure.

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