Ripple has transferred another 500 million XRP tokens from its Escrow account and worried investors after such a sceptic move.
September 04, 2019, | AtoZ Markets - Although Ripple seems to be severely undercapitalized, Ripple Inc. keeps its business policies on the sales of massive chunks of XRP coin which continue notwithstanding the rage of some investors.
Fintech startup Ripple transferred 500 million XRP tokens from its escrow wallet. The XRP transaction took place on 03 Sep 2019 at 04:45 UTC and is part of the normal process of XRP sales carried out by the company. The massive transfer worried investors for the company’s long term stability and had an impact on XRP value.
XRP investors stand out against Ripple
The recent transfer has triggered worriedness among many XRP investors who believe that this excessive liquidity causes an important drop in the price of XRP.
Brad Garlinghouse has defended himself and his company later on. He clarifies in a series of tweets that each sale was scheduled and verifiable. However, this was not adequate for CryptoBitlord, who threatened to fork XRP and create a Ripple token, based on Ripple technology but maintained by the community.
Many from the crypto community are skeptic of Ripple’s intentions. Ripple has 55 billion XRP in its treasury and has the right to unlock one billion each month. Last week Ripple Ceo Brad Garlinghouse took to twitter to clear some rumors and company’s intentions. He said that XRP sales are there to increase the cryptocurrency’s utility and support other business. He also said that Ripple had decreased the sale of XRP by volume.
Ripple is also facing a class-action lawsuit filed by some investors last year. The lawsuit alleges Ripple of selling unregistered securities.
Last month Brad Garlinghouse indicated at many potential investments in the coming time. It would be interesting to see how Ripple manages XRP and how the price of the cryptocurrency fluctuates.
XRPUSD technical analysis
Recently, there was a slow and steady rise in XRPUSD price above $0.2550 against the US Dollar. Moreover, the price even settled above the $0.2600 resistance and the 100 hourly SMA. However, the bulls seem to be struggling to gain momentum above the $0.2650 resistance area. In the last three days, the price made more than two attempts to settle above $0.2650 but failed to do so.
More importantly, there is a breakout pattern forming with resistance near the $0.2650 level on the hourly chart of the XRPUSD pair. If there is a downside break below the $0.2620 level, the price might find support near $0.2600. If there are more downsides, the next key support is near the $0.2580 level since it coincides with the 100 hourly SMA.
Conversely, if there is an upside break above $0.2650 and $0.2665, the XRPUSD price could accelerate gains. The next key resistance is near the $0.2700 and $0.2720 levels. Above $0.2720, the price will most likely climb towards the $0.2800 mark in the near term.
As per the chart, ripple price is currently trading below the $0.2620 and $0.2600 supports. The XRPUSD price must settle above the $0.2650 resistance to gain bullish momentum. If it continues to struggle, there are chances of a downside reaction below the $0.2500 support level in the coming days.