Ripple (XRP) price action thus far has been “cold” and not as impressive compared with other altcoins. Actually, it has been under pressure, losing steam and oscillating within a 4 cents trade range. From the charts, we can observe that XRP opened the year at roughly $0.37 on Jan 2 and is currently at 0.30 on April 26. Because of that XRP is the third largest coin by market cap after ETH reclaimed its spot to second. But, from recent moves, it could be worse.
Flipping bearish pretty fast since this last nasty rejection on $BTC. $XRP does not get any buy volume, this rumour of David Schwartz selling does not help at all! Won't be surprised if we see 0.24 and lower unless a heck of a volume comes from nowhere!#XRPCommunity #XRPArmy pic.twitter.com/fzAPCrg0BV
— CryptHawk (@TheCryptHawk) April 22, 2019
David Schwartz, Ripple’s Chief Technology Officer, has sold a notable amount of his XRP holdings and is apparently liquidating. The sale elicited mixed reactions within the XRP community. It even brought old memories of some top names within XRP who have sold such large amounts in the past.
Warning to all $XRP holders.
Ripple CTO @JoelKatz recently selling his $XRP stack is the biggest warning sign one could ever get. This is the most bearish sign for $XRP I have ever witnessed since beginning of '17.https://t.co/aHqeaLbxv8
I recommend everyone to get OUT NOW
— Hlnoooo (@hlnoooo) April 20, 2019
The XRP sale is thought to have started when the United States Securities and Exchange Commission (SEC), noted that a number of digital assets will be considered securities.
He’s Just De-risking
However, while most in the crypto circles observed a bearish move by the CTO, Schwartz noted that it was a decision that was part of his “de-risking” strategy.
It is this term, “de-risking,” that the XRP community interpreted differently.
“I think profiting is out of the question according to his tweets. He’s talking about ‘de-risking.’ Thing is, ‘de-risking’” at $0.31? You [Schwartz] are clearly not seeing any bullish signs if you are de-risking at all-time LOWS,” said Ernst_Lanzer on Reddit.
It’s A Matter Of Putting Eggs in Different Baskets
However, according to Schwartz and some few folks who came to his defense, de-risking means selling some of his XRP to, maybe, invest in other assets that are less risky than cryptos. In short, Ripple’s CTO has trusted one basket to carry all his eggs and it is time to put some of his eggs in another basket, just in case.
But Ernst_Lanzer was still not convinced that it was until now that David knows the importance of diversifying. Although the CTO has some XRP left “it still doesn’t look good.”
Although Schwartz has in the past sold some of his crypto holdings including Ether (ETH) and Ripple (XRP), the recent sale has been the most publicized. However, the CTO has been holding XRP for roughly five years. He entered the scene when XRP was valued at around $0.00050. Now, even if he sells at $0.30, he still has remarkable profit margins.
Some in the crypto community thought that the CTO wants to buy more. But how if he is selling? Simple. Sell a huge chunk, drive the FUD, the prices drop, accumulate during the lows.
Why It’s a Bad Sign
David’s a crucial member at Ripple, therefore, he has better projections of where XRP may or may not be in the next couple of weeks, months, or even years. Additionally, he knows the plans Ripple has in driving XRP’s adoption. As such, liquidating his XRP shows “that he does not believe there will be any reason for a major price rise anytime soon and he knows more than most [of us].”
Wnfakind, a Redditor, indicated, maybe jokingly, that they are pulling out from the XRP community since XRP’s future “clearly [has] no good signs.”
Do you think that Ripple (XRP) Will drop because of this “precedence”? Let us know in the comment section below.