Some members of the XRP Army are speculating that Ripple may be taking actions to prevent XRP from reaching its all-time high of $3.84.
This theory is based on Ripple’s monthly XRP sales and the belief that many long-term XRP holders could cash out at that price point. The fear is that such massive sell-offs could lead to a loss of retail liquidity for Ripple.
The discussion was initiated by an XRP enthusiast on a recent post on X, which sparked various reactions from the community. One supporter of this idea suggested that Ripple has kept the XRP community waiting for so long that the company might not want to see a surge to $3.84.
The significance of the $3.84 price point lies in the fact that it is XRP’s all-time high, reached on January 04, 2018. Since then, XRP’s value has been on a downward trend and has not revisited this level, despite the recent bullish market in 2021.
Currently, XRP is trading at $0.4933, marking an 87.16% decline from its all-time high. The $3.84 mark is now seen as a psychological barrier where many frustrated retail investors may choose to exit the market.
However, not all members of the community share this viewpoint. Some argue that retail investors do not have a significant impact on XRP’s liquidity.
Data from the XRP Rich List supports this claim, showing that a large number of wallets hold relatively small amounts of XRP, while only a few wallets hold large amounts.
Some XRP enthusiasts believe that Ripple preventing XRP from reaching $3.84 would be counterproductive. Ripple currently holds a significant amount of XRP, which could be valued at over $153 billion if the price were to reach $3.84. This would greatly benefit the company and incentivize it to pursue higher gains.
Furthermore, the idea that Ripple could suppress XRP’s price to prevent retail exits overlooks the fact that any sold XRP would likely be bought by new holders, potentially increasing the token’s value.
Ultimately, XRP’s price is influenced by market dynamics and cannot be controlled by a single entity like Ripple. Even if Ripple were to sell off its holdings, most of its XRP is locked in escrow and not immediately accessible.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The opinions expressed are those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.