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- Ripple Labs has commenced the strategic release of 1B XRP from its escrow accounts, valued at over $510M.
- The XRP experienced a slight price decline of 3.50% over the last 24 hours.
In a tactical effort to sustain the liquidity of the XRP cryptocurrency, Ripple Labs has unlocked a total of one billion XRP coins from its escrow accounts. This release was carried out in four separate transactions, with the total amount of XRP transferred valued at $510 million.
As reported by the well-known blockchain tracker Whale Alert, these transactions took place on September 1 at 12:00 a.m. (UTC), starting with the unlocking of 300 million XRP tokens in the first transaction. The following transactions included the release of 100 million XRP in the second, 200 million XRP in the third, and a substantial 400 million XRP in the final transaction.
XRP Coins Unlock (Source: Whale Alert Telegram Group)
The gradual release of XRP from escrow is part of Ripple’s approach to ensure a balanced circulation of the cryptocurrency, thus avoiding any significant downturn.
Ripple Labs implemented the practice of locking XRP in escrow accounts in 2017 to guarantee regulated distribution. This approach involved a monthly release of one billion tokens over a period of 55 months. According to this timeline, the final transaction is expected to occur by December 2023.
From the total supply of 99,988,458,761 XRP, around 52,977,697,600 XRP, which is approximately 47%, are currently in circulation.
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XRP’s Price Reaction
Significantly, this latest escrow release has shown minimal effect on the XRP price. At present, XRP is trading at $0.5093, reflecting a 3.50% decrease over the previous 24 hours. This price drop aligns with a broader trend of declining prices impacting several major cryptocurrencies in the market. The SEC’s decision to postpone the Bitcoin ETF until October has also contributed to the downturn in the crypto market.
XRP (XRP) Price Chart (Source: TradingView)
Regarding its moving averages, XRP’s current situation indicates an upward trajectory relative to its 200-day moving average (MA), although it remains below its 50-day MA. The Relative Strength Index (RSI) for XRP is at 34.21, suggesting an oversold condition.
If the bearish trend persists, XRP’s price could potentially drop to support levels of $0.4538, or even lower to $0.3275. On the other hand, if bullish momentum prevails, XRP’s value could rise to $0.5837 and possibly reach as high as $0.9421.
What are your thoughts on Ripple’s release of one billion XRP, and how might it affect XRP’s price in the future? Tweet to us at @The_NewsCrypto and share your insights.
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