According to U.Today, Ripple, a major cryptocurrency market player, has been questioned about its extensive XRP sales. The company's Chief Technology Officer, David Schwartz, recently clarified the reasons behind these sales. Schwartz emphasized that Ripple is the largest holder of XRP, and the only practical alternative to selling would be to hold it indefinitely.
In Ripple's Q1 2024 report, detailed information about its XRP holdings was provided. The holdings are split into two categories: XRP that is immediately available in Ripple's wallets and XRP that is locked in on-ledger escrow accounts. These escrow accounts are set to release XRP monthly over the next 42 months. Ripple does not have access to the escrowed XRP until it is released according to this schedule. Most of the XRP released each month is returned to the escrow account, reflecting a controlled release strategy.
As of March 31, 2024, Ripple held 4.8 billion XRP, with an additional 40.1 billion XRP in on-ledger escrow. The current price of XRP is approximately $0.50 per token. The price chart shows that XRP has been trading in an upward corridor since May 2023, with the upper dynamic resistance now at $0.80 per token. However, the token is currently near its support level, where it has remained for the past month after experiencing a 22% decline in mid-April.
The question remains whether XRP can recover from its recent downturn and what role Ripple's continued token sales will play in this process.
