XRP Army Argues Ripple May Prevent XRP from Reaching $3.84

XRP Army Argues Ripple May Prevent XRP from Reaching $3.84

Time Stamp: June 19, 2024 3:36 AM
XRP Army Argues Ripple May Prevent XRP from Reaching $3.84 PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Some members of the XRP Army have voiced the sentiment that Ripple could make efforts to prevent XRP from reclaiming its all-time high of $3.84.

This speculation draws inspiration from Ripple’s monthly XRP sales and the view that many long-term XRP holders may realize profits from such a price target. According to the theory, the exit sales could allegedly cause Ripple to lose retail liquidity.

An XRP enthusiast sparked this discussion in a recent post on X, prompting various responses from the community. One advocate of this view argued that Ripple has “kept” the XRP community waiting so long that the company might be reluctant to allow a $3.84 price surge.

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Significance of a $3.84 XRP Price

Notably, the $3.84 price is XRP’s all-time high, attained on January 04, 2018. Since then, XRP’s value has steadily declined and has not retested this level, even with the onset of another bull market in 2021.

Now, XRP trades at $0.4933, representing an 87.16% drop from its ATH. Essentially, the $3.84 mark is now considered a psychological level at which many frustrated retail investors might choose to exit the market.

Meanwhile, not all community members share this sentiment. Some argue that retail investors do not significantly contribute to XRP’s liquidity. 

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Data from the XRP Rich List supports this perspective. It reveals that approximately 1.75 million XRP wallets hold between zero and 20 tokens, collectively amounting to 21.27 million XRP.

Around 2.42 million wallets also hold between 20 to 500 XRP, collectively holding about 181.86 million tokens. In contrast, just 160 XRP wallets possess balances exceeding 6 billion XRP.

Ripple Preventing $3.84 Price Point Could be Self-defeating

New York-based XRP enthusiast John K expressed that Ripple suppressing XRP from reaching or exceeding $3.84 would be self-defeating. 

Notably, Ripple holds over 40 billion XRP in spendable balance and escrow, valued at approximately $20 billion. A $3.84 price per XRP puts the company on a reserve of over $153 billion.

In other words, the notion that Ripple would suppress XRP from reaching its previous high due to fears of retail exits is purely hypothetical. As established, such price levels would significantly benefit the company, incentivizing it to pursue further gains.

Additionally, the perspective overlooks the fact that sold XRP would likely be acquired by new holders, potentially increasing the value of the circulating tokens.

Moreover, XRP’s price is determined by market dynamics and is beyond the control of one entity such as Ripple. Even if Ripple aimed to dump all its holdings to suppress the price, this would not be achievable as most of its balance is in escrow and not readily accessible.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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