For spot traders, there will be no better gift than Ripple (XRP) prices recovering and rebounding from H2 2019 losses. For perspective, XRP is down 37% year-to-date, trading at 21 cents and far from the 85 cents mark that XRP had soared to in September 2018.
So far, it has been a steep, painful downtrend for most XRP holders but there is a relief on the way. A quick scan of XRP movement as recorded by XRPL Monitor, a site that monitors XRPL public transactions, points to bulk movement of XRP by Ripple Inc., the for-profit company behind xRapid, xCurrent and xVia.
Curbing Falsified Trading Volumes
Captured, Ripple returned 1 billion XRPs to escrow, turning away purchasers and sending them to the retail market.
— Leonidas Hadjiloizou (@LeoHadjiloizou) December 2, 2019
This, as per observers, is in line with what Ripple Inc. had succinctly mentioned in their Q2 2019 report. In June 2019, Ripple stated that they will reduce their XRP sales to curb what they had termed as falsified and inflated trading volumes as highlighted by a report by Messari. To that end, they re-evaluated their sources of legitimate trading volumes, settling for CryptoCompare’s Top Tier (CCTT) as their benchmark.
XRP Sales Dropped in Q3 2019
Ripple Inc also announced that they will take a more conservative approach going forward, substantially lowering the amount of XRP sales to third-parties. Because of this decision, in Q3 2019, the amount of XRP sold drastically dropped to $66 million from $251 million in the previous quarter.
Also, it also emerged that at some point in Q3 2019, they stopped their programmatic sales of XRP and instead started focusing more on over-the-counter sales. Their goal was to strengthen and develop strong partnerships with firms advancing their objectives of increasing their presence in SE Asia and EMEA.
Claims of Price Manipulation
With this decision, Ripple is keen on taking back control, matching customer demand and deliberately controlling the amount of XRP in circulation. The move, given the steep losses and bleeding investors, could be a shot in the arm for XRP bulls.
It doesn't take much to make a strong case that XRP is a scam given the widening discrepancy between the daily good news/developments & price. A constantly manipulated price is a type of scam, esp. when that manipulation is not possible without Ripple's acquiescence.
— nrad (@nrad1975) November 27, 2019
Already, a section of the vocal XRP community was concerned of what they termed as a dump and suppression of prices by Ripple Inc, the majority owners of the third most valuable coin. Brad Garlinghouse, the CEO of Ripple Inc., explained that their sales of XRP was to support their expansion and strike valuable partners in their zones of interest.
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich