- Ripple Labs has unlocked one billion XRP tokens from its escrow reserves.
- The total value of the transferred XRP amounts to $510 million.
- The recent release from escrow has minimally affected the XRP price.
In a tactical maneuver designed to preserve the fluidity of the XRP digital currency, Ripple Labs has unlocked a cumulative sum of one billion
Whale Alert, a widely recognized blockchain monitoring platform, reported that a series of transactions occurred on September 1 at midnight. (UTC). The initial transaction involved the unlocking of 300 million XRP tokens. This was followed by subsequent transactions that saw the release of 100 million XRP in the second transaction, 200 million XRP in the third, and a substantial 400 million XRP in the final transaction.
The strategic escrow release of XRP by Ripple is a measure to ensure a stable cryptocurrency circulation, thereby averting severe depreciation.
In 2017, Ripple Labs pioneered sequestering XRP in escrow accounts as a strategy for regulated distribution. This approach entailed a monthly liberation of one billion tokens over 55 months. According to this timeline, the last transaction will be accessible by December 2023.
Approximately 47% of the total XRP supply, which amounts to 99,988,458,761 XRP, is currently in circulation. This translates to around 52,977,697,600 XRP.
XRP’s Price Shift
Significantly, the recent release from escrow has shown a minimal effect on the XRP price. XRP is exchanging hands at $0.5093, marking a 3.50% drop in the last 24 hours. This downward shift aligns with a wider trend of price depreciation impacting numerous leading cryptocurrencies in the market. The SEC’s choice to postpone the Bitcoin ETF until October has further fueled the downturn in the crypto market.
Analyzing the moving averages, XRP’s present trajectory suggests a bullish trend when compared to its 200-day moving average despite still being under its 50-day moving average. The Relative Strength Index (RSI) for XRP is currently at 34.21, signaling that it is oversold.
Should the negative market outlook persist, we could see XRP’s value potentially nosedive to support levels at $0.4538 or dip as low as $0.3275. On the flip side, if positive market forces prevail, we could witness a surge in XRP’s price to $0.5837, potentially climbing as high as $0.9421.
