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XRP – the cryptocurrency with close ties to fintech company Ripple – had a rough 2019, posting yearly losses of over 40% that came about in tandem with a general rise seen by Bitcoin and other cryptocurrencies.
Many analysts and investors alike had pinned the crypto’s bearishness on Ripple’s quarterly token sales, which appeared to have been a major catalyst for losses due to the extreme selling pressure these sales placed on the crypto.
New data now suggests that the company is grinding these token sales to a halt, as Ripple’s Q4 XRP sales marked the smallest quarterly sale seen in nearly three years – but will this be enough to bolster a fresh uptrend for the cryptocurrency?
Ripple Slows Quarterly XRP Token Sales Following Backlash
The backlash that resulted from the company’s token sales was frequent and unwavering, with many investors resenting the fintech company due to its actions potentially being the source behind the cryptocurrency’s bearishness throughout 2019.
It appears that Ripple was receptive to the criticism, however, as new data elucidates that their Q4 token sale was the smallest seen in almost three years.
“Ripple only sold $13 million worth of XRP in Q4, which is the lowest sum sold by Ripple in almost three years. Huge difference from the all-time high of $251 million in Q2. Despite that, the price of XRP has declined by 22% in the same time period,” Larry Cermak, the director of research at The Block, explained in a recent tweet.
Ripple only sold $13 million worth of XRP in Q4, which is the lowest sum sold by Ripple in almost three years. Huge difference from the all-time high of $251 million in Q2. Despite that, the price of XRP has declined by 22% in the same time period. pic.twitter.com/iP1AUoivq1
— Larry Cermak (@lawmaster) January 23, 2020
Will the Decline in Token Sales Spark a Massive Rally?
It is important to note that 2020 has so far been a great year for XRP, as the cryptocurrency has been able to climb from its recent lows of under $0.18 to highs of $0.25, before declining slightly to its current price of $0.226.
It is possible that Ripple’s Q4 token sale will mark a turning point for the cryptocurrency, as they may be shifting their funding strategy away from selling tokens on the open markets, thus giving the crypto further room to rally.
Galaxy, a popular cryptocurrency analyst on Twitter, explained in a tweet from yesterday that he believes XRP will climb up towards $0.30 in the near-term.
“XRP looking ready,” he said while pointing to the chart seen below.
$XRP looking ready pic.twitter.com/dYzMviNQLe
— Galaxy (@galaxyBTC) January 22, 2020
It’s a strong possibility that XRP’s 2020 rally could just be getting started, as investor confidence is likely to grow significantly if Ripple continues to lessen their quarterly sales.
Featured image from Shutterstock.
