Ripple Sells 150 Million XRP Tokens, Spark Price Arguments

Ripple sold 150 million XRP tokens worth $78 million at an average price of $0.52.

The massive sale follows the company's $208 million sale of 400 million XRP tokens in June.

Ripple will sell 150 million chunks from June reserve

Ripple sold 150 million XRP tokens worth $78 million, representing 0.25% of the XRP market capitalization. It comes days after the company transferred 3 billion XRP tokens, worth nearly $1.5 billion, in a series of transactions from the linked wallet within 30 minutes.

As history shows, this unusual move has created a threat to the price impact, because Ripple's scrounge activities can affect the price of XRP. Concerns have been exacerbated by speculation that Ripple may be preparing for its biggest monthly XRP dump since 2017.

“Supply Shock Will Make XRP Plunge,” Coach K Crypto said in a post on X.

Read more: How to buy XRP and everything you need to know

However, the value of the altcoin remains unaffected. According to BeInCrypto data, Ripple's native asset is trading at $0.51, losing 1.26% in the last 24 hours in relation to the broader market trend.

XRP Price Outlook

XRP is trading with a bullish bias on the intraday timeframe as it anticipates higher lows. However, this view is under threat as the price is above the rising trend line. A breakdown of this support level and an effective reversal to resistance can trigger panic.

Based on the relative strength index (RSI) view below the signal line, bears can regain the XRP market. It indicates that the selling pressure is intensifying and the price may continue to decrease soon. Often, traders use this signal to sell or consider selling a property.

The Parabolic Stop and Reversal (SAR) indicator reinforces this view by tracking the XRP price above. As long as this price tracking indicator darkens the price, the market will remain weak.

RSI is still below the average of 50, the bears are dominant, and the price of Ripple may be close to a crash. A loss of support due to an upward trend could throw XRP on a cliff, where it can rotate to provide another buying opportunity at the psychological level of $0.5000.

In a critical scenario, the decline could extend below the $0.4784 support, indicating an 8% decline below current levels. If this level fails to hold as support, the price of XRP may cross to $0.45000. Levels were tested last April 13.

On the other hand, if the uptrend holds as a support floor, Ripple's price could push northward. A stable candlestick close above $0.5432 makes XRP attractive by forming a higher position. In extreme cases, the price may extend to the limit of $0.6500.