Some members of the XRP community have been discussing the possibility of Ripple taking actions to prevent XRP from reaching its all-time high of $3.84.
Speculation has arisen from Ripple’s monthly XRP sales and the belief that long-term XRP holders may decide to sell off their holdings at this price point. It is suggested that these exit sales could potentially lead to a decrease in retail liquidity for Ripple.
This conversation was initiated by an XRP enthusiast in a recent post on a platform called X, leading to a range of responses from the community. One supporter of this theory argued that Ripple has delayed the XRP community for so long that they may be hesitant to see a surge in price to $3.84.
The significance of the $3.84 price point lies in the fact that it represents XRP’s highest value ever recorded on January 4, 2018. Since then, XRP has experienced a consistent decline and has not revisited this level, despite the recent bull market in 2021.
Currently, XRP is trading at $0.4933, marking an 87.16% decrease from its all-time high. The $3.84 mark is now seen as a psychological barrier where many frustrated retail investors might choose to exit the market.
However, not everyone in the community agrees with this sentiment. Some argue that retail investors do not play a significant role in XRP’s liquidity.
Data from the XRP Rich List supports this argument, showing that a small number of wallets hold a significant amount of XRP, while the majority hold smaller amounts.
One New York-based XRP enthusiast, John K, believes that Ripple preventing XRP from reaching or surpassing $3.84 would be counterproductive. Ripple holds a large amount of XRP in balance, and a price of $3.84 would greatly benefit the company.
It is important to note that XRP’s price is influenced by market dynamics and is not solely controlled by Ripple. Even if Ripple were to sell off its holdings to suppress the price, most of its balance is in escrow and not easily accessible.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed are the author’s personal opinions and do not necessarily reflect The Crypto Basic’s opinion. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.