Key Takeaways
- Ripple’s over-the-counter sales of XRP skyrocketed over 1,760% in Q2 2020
- Many investors seem concerned about the substantial increase in the total number of circulating tokens
- A spike in the selling pressure behind XRP may see it pull back towards $0.28 or even $0.25
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Ripple revealed that it ramped up its XRP sales last quarter, which may lead to a steep correction based on different fundamental and technical metrics.
XRP Sales Spike
Ripple made headlines after revealing in its “Q2 2020 XRP Markets Report” that it continues to flood the market with more XRP. Although the US-based technology company had dramatically reduced the sale of its tokens in Q1, it appears to be back at it. Ripple sold approximately $32.6 million XRP to institutional investors Q2, a 1760% increase.
According to Ripple, the significant spike in sales is partially due to the growing adoption that the cross-border remittances token have experienced and its integration into different markets.
“The development of liquid and robust markets is key to the success of ODL. The second quarter of 2020 saw numerous integrations that helped contribute to the health of XRP markets,” reads the report.
After the report was released, the number of XRP-related mentions on social media exploded. The rising chatter around the international settlements altcoin allowed it to move to the number six spot on Santiment’s Emerging Trends list.
Usually, when market participants pay heightened attention to a cryptocurrency, it leads to a steep correction.
“On average, the moment [cryptocurrencies] show up on the list, the dump begins. In the second week since appearing on the Emerging Trends list, the coins we backtested have, on average, lost a massive 8% of their total price. And this is on a sample of 200 coins,” said Dino Ibisbegovic, head of content and SEO at Santiment.
Bearish Impulse on the Horizon?
The TD sequential indicator adds…
