Ripple to cash out $38 million in XRP amid bull run

XRP surged 6% from $0.52 to $0.55 per token in the last 24 hours during the most recent bull rally in the cryptocurrency market.

This event created an excellent opportunity for Ripple to move another 70 million XRP ($38.5 million) in preparation for what could be another possible sell-off.

As for context, Ripple unlocked 1 billion XRP tokens on October 1, of which the company kept 200 million for this month’s payments. From the 200 million tokens, Ripple moved 135 million in two batches of 60 million on October 10, and 75 million on October 16.

Notably, this most recent activity uses 65 million XRP from October’s escrow, while also using 5 million from the previous balance in the company’s main crypto wallet address (Ripple 1).

Finbold once again turned to the open ledger on XRP Scan to register and report how Ripple is using the unlocked tokens. This should help investors understand XRP’s supply inflation dynamics, considering it affects holders’ long-term value investments.

Understanding the pattern Ripple uses for its sell-offs

Differently from Finbold’s previous reports, this one offers the possibility for XRP investors to get ready in advance for a possible sell-off of $38.5 million in XRP tokens from the company controlling approximately half of its whole available supply.

At 04:25 am (UTC) on October 24, the company sent a total amount of 70 million unlocked XRP from the “Ripple 1” address to the previously used unknown address “rJqiM…La8nE”. This amount still remains at this point, by the time of publication.

If Ripple follows the same pattern previously observed and reported, the crypto market should expect to see a new series of payment transactions using the following addresses:

• “rJqiM…La8nE” should send around 1 million XRP to ​​“rKL6i…S5Xwa”, which can later be sent to a centralized exchange address like Bitstamp or Bitso.
• “rJqiM…La8nE” should send around 65 million XRP to “rP4X2…sKxv3”.
• “rP4X2…sKxv3” should forward this payment to “rhWt2…E32hk”.
• “rhWt2…E32hk” should then immediately forward it to “rJgpQ…7hCvf”.
• Which should finally be forwarded to “r4wf7…h4Rzn”.

Interestingly, this final address was previously used to distribute the sell-off amounts to four or five centralized exchanges. With Bitstamp and Bitso receiving the largest amounts of around 30 million and 20 million XRP tokens, respectively.

The Independent Reserves exchange and BTC Markets were also used in past events receiving less than 10 million XRP. Another unlabeled address has also been used in this final distribution phase: “rsdkG…apapb”.

A similar pattern also happened in September, amid a price crash. However, there are no guarantees that Ripple will follow the same path, nor that the current $38.5 million in XRP will be sold in the open market.

Nevertheless, traders and investors can use this information to monitor and support their decision-making. It is important to say that this value accounts for 1.65% of the XRP spot volume in the last 24 hours, at the time of publication.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk

Source