A recent analysis of Ripple’s XRP sales data has unveiled intriguing patterns, sparking curiosity about the company’s strategies amid its legal tussle with the U.S. Securities and Exchange Commission (SEC). Well-known Crypto analyst Mr. Huber revealed important insights into Ripple’s XRP sales and legal struggles during the peak of XRP’s value in April 2021.
Ripple’s Stopped XRP Selling
In a recent tweet, Mr. Huber pointed out that Ripple stopped selling XRP for 22 weeks after the SEC filed a lawsuit against Ripple in December 2020, signaling a temporary pause in supply influx. Notably, co-founder Jed McCaleb also stopped his XRP sales during this period, adding to the break in circulation.
Do you recall the peak in 2021, when @JoelKatz pinpointed the exact peak? The following observations: Ripple didn’t sell any more XRP in the first 22 weeks after the SEC lawsuit was filed, according to circulating supply data. Jed McCaleb also halted his sales for a period.… https://t.co/ehQrPIgUm0 pic.twitter.com/cIo6t4aH0P
— Mr. Huber🔥🦅🔥 (@Leerzeit) April 1, 2024
Interestingly, court rulings between April 4 and 8 injected volatility into the XRP market. While the SEC’s attempt to access the personal finances of Ripple executives was denied. Later ripple request was approved by the court regarding the order for Hinman documents‘ disclosure, adding fuel to the fire.
This period witnessed XRP’s value soaring by a staggering 250% within just 10 days, reaching its peak on April 14, 2021.
Ripple’s Supply Data
However, a closer look at Ripple’s supply data post-peak reveals interesting trends. Four weeks later, the data showed inconsistent behavior, with a notable buyback of approximately 10 billion XRP followed by a subsequent sale of about 10.7 billion XRP in early May.
This buyback-sale sequence resulted in a net sales figure of 700 million XRP since December 2020.
Selling Bitcoin to buy back XRP
The timing of Ripple’s buyback, happening as Bitcoin’s price dropped, has led to speculation among analysts. Some believe Ripple sold Bitcoin to buy back XRP, possibly trying to shift focus from Bitcoin to XRP. However, the delay in reporting supply data for two weeks makes this unclear.
Additionally, the lack of supply data for the 22 weeks before these events makes the analysis more complicated. Without a full picture of Ripple’s actions leading up to the buyback, it’s hard to know their true intentions.
XRP Price Analysis
Currently, the price of XRP stands at $0.606, showing a 3.49% decrease in the last 24 hours. Despite this decrease, there has been a notable surge in trading volume, reaching $1.43 billion, marking a significant increase of 63%.
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