Ripple, the company behind XRP tokens, plans to sell 100 million tokens on Sunday in response to the recent escalation of the Iran-Israel conflict and a significant decline in the crypto market.
The corporation, which regularly engages in monthly sell-offs, has been exerting a substantial influence on the price of the asset.
In April, Ripple released 1 billion XRP and sent 200 million tokens to its Treasury account, designated as ‘Ripple (1)’. Nevertheless, the anticipated decrease in sales for this month was delayed, resulting in 50% of the reserves being withdrawn from the account, which is believed to have a value of $50 million.
The 100 million XRP tokens remained unused in the ‘rP4X2…sKxv3’ account, which transfers cash to recognized addresses of cryptocurrency exchanges. Traditionally, the value of XRP has declined in the past when Ripple sold its tokens from the monthly reserves account.
This pattern implies a correlation and a substantial influence on the asset, with the evidence suggesting that if Ripple engages in selling, there is a likelihood of a decrease in XRP’s exchange rate.
Concerns have arisen among XRP investors regarding the recent transfer of 100 million Ripple tokens, as they fear it may contribute to the underperformance of XRP.
The Iran-Israel dispute has exerted geopolitical tensions that have negatively affected the entire market, resulting in a decline in the value of the cryptocurrency, which is presently trading at $0.485.
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