- XRP has been struggling to follow other major coins during 2020.
- The digital asset is currently trading at $0.244 and has lost a significant portion of its market dominance.
It’s a known fact that Ripple owns the majority of XRP coins. The founder, Jed McCaleb, stated that he held around 9 billion XRP tokens in 2014. This number represents close to 10% of the total supply. Recent estimations show that McCaleb still owns approximately 4.7 billion XRP, which is more than 10% of the current circulating supply.
According to a February report by Whale Alert, the average amount of XRP sold was around 1.74 million per day, an increase of 266% compared to 2019. Even at today’s prices, this figure represents about $400,000 sold every day. The total trading volume of XRP is undoubtedly a lot more; however, the constant selling pressure could be affecting the cross-border giant.
Here is a fun quote from the CEO of Ripple:@bgarlinghouse clarified “We would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now.”
Dumping $XRP on you is how Ripple stays alive. https://t.co/H2KwsANDVo
— Luke Martin (@VentureCoinist) March 1, 2020
The company has been heavily criticized for not only owning a lot of XRP coins but also for selling them regularly. However, according to the Financial Times, Ripple would be at a loss without the sales of XRP.
XRP/BTC/ETH Comparison chart
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We know that most cryptocurrencies tend to follow Bitcoin’s moves. XRP was indeed following Bitcoin up to a crucial point around March, where Bitcoin, Ethereum, and many others had a significant bull rally while XRP continued trading sideways.
Eventually, around May 2019, XRP did have a bull rally that didn’t last long. The price of XRP plummeted, hitting lower lows while the rest of the market did not.
XRP/USD daily chart
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After the dump on September 3, XRP price has managed to bounce from the 100-MA several times. Buyers are still holding this support level, but struggling to see any bullish action. The RSI has dropped to lower lows and seems to have formed a trendline that could push XRP up to $0.254, the next resistance point if broken.
On the other hand, a loss of the 100-MA would be devastating for XRP as there are almost no support levels on the way down beside the 200-MA at around $0.214.