Secret Revealed: A Top Crypto Analyst Reveals the Truth Behind the XRP Sales Pause.
A recent analysis of Ripple’s XRP sales data revealed an interesting pattern, sparking curiosity about the company’s strategy amid its legal dispute with the U.S. Securities and Exchange Commission (SEC). Mr. Huber, a well-known crypto analyst, revealed important insights into Ripple’s XRP sale and legal battle when XRP value was at its peak in April 2021.
Ripple suspends XRP sales
In a recent tweet, Mr. Huber pointed out that Ripple suspended XRP sales for 22 weeks after the SEC filed a lawsuit against Ripple in December 2020, signaling a temporary halt in supply inflows. Notably, co-founder Jed McCaleb also stopped selling XRP during this period, putting it out of circulation.
Interestingly, court rulings between April 4 and 8 injected volatility into the XRP market. The SEC’s attempts to access Ripple executives’ personal finances were rejected. The court later added fuel to the fire by granting a request for repercussions in relation to the order to release the Hinman documents.
During this period, the value of XRP surged 250% in just 10 days, reaching a peak on April 14, 2021.
Ripple’s supply data
However, a closer look at Ripple’s supply data since the peak reveals an interesting trend. Four weeks later, the data showed inconsistent behavior with notable buybacks of approximately 10 billion XRP and subsequent sales of approximately 10.7 billion XRP in early May.
Through this share repurchase process, net sales since December 2020 have reached 700 million XRP.
Sell Bitcoin to buy back XRP
The decline in Bitcoin prices has led to speculation among analysts about the timing of Ripple’s share buyback. Some people believe that Ripple sold Bitcoin to buy back XRP, possibly attempting to change its focus from Bitcoin to XRP. However, a two-week delay in reporting supply data makes this unclear.
Additionally, the lack of supply data for the 22 weeks prior to these events further complicated the analysis. Without a full picture of Ripple’s actions leading up to the share buyback, it is difficult to know their true intentions.
XRP Price Analysis
The current XRP price is $0.606, down 3.49% in the last 24 hours. Despite this decline, trading volume surged significantly, reaching $1.43 billion, representing a significant increase of 63%.