XRP Price Analysis: Ripple Executes Large 1 Billion XRP Transaction
- Ripple conducts a large transaction of XRP – 1 billion tokens moved, worth around $302 million.
- XRP/USD remains trading around the big demand area, $0.3000-$0.2500. Price action is also confined within a descending wedge formation, observed via the daily chart.
Huge Ripple XRP Transaction
Ripple, the San Francisco blockchain organization, conducted a large transfer of 1 billion XRP tokens, which is worth around $302 million. This was sent from one of its escrow wallets to an unknown wallet. In terms of the transaction fee, this cost less than a single penny to be made, which as usual, was done in a matter of seconds.
It is worth a reminder that Ripple themselves hold around 60% of the total circulation of XRP, and much of that is stored in its escrow. This transaction itself is not totally out of the norm, as Ripple are known for regularly selling portions of their stored tokens to the likes of institutions, crypto exchanges and any other potential interested parties.
This transaction is somewhat similar to others seen in the past by the company. However, this time around it certainly caught some attention across the community. The memo/reference that accompanied the transfer strangely said “Crawl… Walk… Run… ;)”. This left many wondering what it could potentially mean, if anything.
As previously reported via Hacked, Ripple sold $535.56 million of XRP for the full year of 2018. This was detailed in their Q4 2018 sales report.
Technical Review – XRP/USD
XRP/USD continues to trade just above the big buying area, which as previously noted, tracks from $0.3000-$0.2500 initially. On several occasions, this zone has proven to find large bulls come into action, providing a strong wave of buying. Price action does also remain stuck within a narrowing descending wedge formation structure. Given the tightness at which this is moving and closely tracking the upper trend line, one would expect an imminent breakout.
Upside resistance is current observed at $0.3150, and a clean daily break above here will see a push north of the mentioned trend line. Should the bulls manage to see a closure above here, then another intense bout of buying pressure may shortly follow. The next territory of interest to breakdown, would likely be the $0.3500 area. XRP/USD has not convincingly traded above here since 10th January, when the market was hit hard with double-digit losses.
In terms of support, if the below demand area of $0.3000-$0.2500 fails to hold, then eyes will be on the round $0.2000. This has also proven to be a key daily support level. Any further pressure to the downside could be catastrophic below these levels. It would likely create much FUD and see the likes of $0.1500 and then $0.1000 called into action. XRP/USD has not traded down at these low levels since December 2017.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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