A recent report revealed that one of the founders of Ripple is constantly selling his XRP coins.

As the circulating supply of this token continues to rise, there could be some serious implications for its price.

The whales keep dropping their coins:

In someone’s post Postings Interested in tracking the movement of cryptocurrency whales and blockchain analytics The movement of one of the founders of Ripple “Jed McCaleb” was tracked and monitored as one of the synthetic Ripple whales – this term is used to describe individuals who receive a large amount of cryptocurrency in return for “free” when starting the project -.

According to the blog post, McCaleb received 9 billion XRP over the past years as part of his compensation for his role as the founder of Ripple.

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More than 90,000 transactions appearing to be linked to McCaleb have been identified.

So far, McCaleb has sold 1.05 billion XRP between 2014 and 2019 at an average price of $0.129.

This means that this amount of tokens sold is equivalent to $135 million.

Despite the massive sell-off seen over the past few years, the post confirms that today McCaleb continues to sell his XRP coins.

In fact, McCaleb sold 19 million XRP during the first month of this year and still holds about 4.7 billion XRP worth over $1 billion.

And McCaleb is not the only one planning to sell his XRP.

Ripple co-founder Arthur Britto also has billions of XRP in an escrow account that will become available sometime in the near future.

According to Mike Novogratz, CEO of Galaxy Digital, this may be one of the main factors that led to the loss of the Ripple currency by more than 46.30 percent of its value during 2019 and this trend may continue.

Novogratz stated:

XRP didn’t perform well last year and I think it will do poorly again this year and that’s because of the show.

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XRP prepares for a bounce:

Despite Novogratz’s valuation of XRP, the cryptocurrency has surged over 60 percent since mid-December 2019.

It rose from a low of $0.176 to a high of $0.289.

After the massive price increase in such a short period of time, multiple technical patterns are now indicating that XRP could correct.

XRP appears to be being rejected by the upper boundary of a parallel channel as it has been contained since December 17, 2019.

Since then, every time the price reaches the top of the channel, it moves to the middle or below it.

But when it reaches the bottom of the channel, it bounces back to the middle or the top.

If this technical pattern continues to hold, a pullback to the lower boundary of the channel is very likely.

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In addition, the TD sequential indicator is currently providing a sell signal in the form of strength that adds credibility to the bearish outlook.

However, the bullish impulse that allows XRP to break above the ascending parallel channel could be the catalyst for further advance.

A move above this important price barrier could push the price of this cryptocurrency to $0.35.

At that price, McCaleb’s holdings would be worth $1.65 billion.

XRP, currently ranked third by market capitalization, is up 3.60% over the past 24 hours.

XRP has a market capitalization of $12.4 billion with an estimated trading volume of 2.3 in the last 24 hours.

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