- Jed McCaleb increased his XRP sales under the agreement with Ripple in 2016.
- The selling could put pressure on Ripple, which struggles with the uptrend above $ 0.6.
Ripple took a sudden breakout of $ 0.92 in November but failed to sustain the uptrend. The third largest cryptocurrency has remained stable above $ 0.6 this week, but as of this writing it has fallen into the $ 0.5 range, possibly due to immense selling pressure when Ripple’s co-founder Jed McCaleb downloads his digital assets.
Sales of Jed McCaleb XRP reached an all-time high
The cross-border co-founder is believed to own around 3.8 billion XRP. As the token price increased, the daily trading volume also increased, allowing McCaleb to increase his sell rate. An agreement signed between him and Ripple in 2016 allows the co-founder to sell up to 1% of the daily average XRP volume.
According to Leonidas Hadjiloizou, a renowned analyst, McCaleb preferred to increase sales as the volume increased. At one point, 9.9 million XRPs were sold, making it the co-founder’s highest daily sale. In case you keep downloading at such high rates, your XRP wallet will run out in around 380 days. Hadjiloizou further explains:
Keep in mind that, according to the agreement between Jed and Ripple, the amount it sells changes every week (every Sunday). This means that for each of the next six days, it will sell this amount.
Other reputable analysts believe these sales are putting XRP under pressure. Mati Greenspan once stated that “it is not possible to sell more than 2% of a token’s total outstanding supply without affecting the price, at least a little. “
Ripple at the apex of failure
XRP has been fixed under a symmetrical triangular pattern as discussed on Friday. The token is trading at $ 0.59 at the time of writing, while support appears to have been established at $ 0.55. However, if Ripple ends the day below $ 0.6, massive dips could occur.
XRP / USD 4-hour chart
On the downside, the next formidable support is found at the 50 Simple Moving Average on the 4-hour chart, as highlighted at $ 0.45 (last week’s anchor). Extended dips below this zone are likely to update lower levels at 100 SMA ($ 0.35) and 200 SMA at $ 0.3.
On the flip side, recovery could come into the picture if XRP closes the day above $ 0.6 and perhaps recovers its position above the uptrendline. Trading above $ 0.6 would encourage more buyers to enter the market, likely creating enough volume to attack other resistance levels at $ 0.7 and $ 0.75.