On November 1, Ripple unlocked 1 billion XRP and prepared its potential largest dump in seven years, as Finbold reported. Five days later, again unlike what historically happened in previous months, Ripple has already moved all the 470 million XRP.
Notably, the company warned of ongoing transfers to third parties that could increase November’s activities for transferred amounts larger than usual. By September 30, Ripple had over 4.43 billion XRP available for transfers in its wallets and 38.90 billion XRP still locked in escrows, with ongoing monthly releases for the next 42 months.
“From time to time, Ripple supports or transfers to third parties, such as ETPs, trusts, and other investments, XRP that Ripple reasonably expects to maintain in its holdings. When doing so, a reduced amount of XRP may be returned to escrow that month. Until and unless Ripple expects such XRP to enter the broader market (through, for example, further transfers to third parties), that XRP is included in “XRP Held by Ripple.”
– Ripple
In previous months, Ripple used to reserve only 200 million XRP from the unlocks, sometimes adding more from other accounts. Moreover, the company usually offloaded these tokens throughout the month in a gradual manner, carefully diluting the dump.
What happened so far to Ripple’s largest sell-off in November
However, November’s activity also differs from the other months, not only in quantity but also in the offloading pattern and speed. Finbold followed Ripple’s trails via XRP Scan on November 8, identifying some of the transfers until reaching centralized exchanges (CEXs).
After unlocking the escrow from Ripple (24) and Ripple (25), the company relocked 530 million XRP into escrows for February 2028 in the accounts Ripple (12) and Ripple (13), reserving the 470 million XRP into Ripple (1).
On November 6, Ripple (1) surprisingly transferred the entire amount to rP4X2h(…), distributing 270 million XRP into two accounts. The unlabeled wallet sent 170 million tokens to Ripple (50) and 100 million to rhWt2bh(…).
While Ripple’s account relayed the full amount to rK2TXY(…), the other branch partially proceeded to r4wf7en(…), following its path to centralized exchanges like Bitstamp and Bitso, reaching the market.
XRP price analysis
As of this writing, XRP is trading at $0.55, up 7.12% in the last seven days. This represents a high-demand moment for the token, absorbing the selling pressure from Ripple’s potentially largest monthly dump in seven years.
Interestingly, the weekly price action is a tale of how both supply and demand act together for price formation. Nevertheless, Ripple still holds significant unsold, yet liquid, amounts that may reach the market in November – requiring caution.
Featured image via Shutterstock
