Last week’s price movement underscored the weakness of the currency, with many analysts expecting a recession.
The systematic sale of tokens by one of the founders of Ripple also does not help alleviate concerns about price manipulation and adds to the pressure of sellers.
Many investors have blamed token sales every quarter for underperforming the asset in 2019.
Although these sales have since been discontinued, one of Ripple’s founders, Jed McCaleb, sells about $ 400,000 in XRP every day.
These sales, which are part of a lawsuit with Ripple, can contribute to the technical weakness of the cryptocurrency.
McCaleb’s actions were first reflected by TheCryptoAssociate, which tracked outbound transactions from the Ripple founder’s portfolio. Thus, he found that McCaleb was selling 1.8 million XRP every day in April.
Last week’s sluggish close and McCaleb’s sales put a lot of pressure on the XRP. These two things may mean that currency downturns are coming in the coming days, weeks, and probably months.