The recent unlocking of 1 billion XRP tokens by Ripple has sent shockwaves through the XRP investor community, igniting doubts, fears, and uncertainty. This significant move, equivalent to approximately $153 million, was executed in multiple transactions, sparking a crucial question: What lies ahead for XRP?
Ripple Fights for Stability: $1 Billion at Stake?
In numerous transactions, Ripple unlocked 1 billion XRP tokens valued at $153 million. Though this is not new, since 2017 this move has been part of Ripple’s ongoing strategy to maintain liquidity in the XRP market and divert its use in cross-border transactions. While this strategy serves the broader purpose of enhancing the utility of XRP, it can have temporary implications for the cryptocurrency’s price.
Leading cryptocurrency tracking platform, Whale Alert, reported that Ripple initiated the unlocking process through four transactions on September 1. The first transaction unveiled 300 million XRP, equivalent to $153 million. Subsequently, an additional 100 million XRP (valued at roughly $51 million) were unleashed. The final two transactions saw Ripple releasing 200 million and 400 million XRP, injecting over $300 million into the market. This influx of XRP tokens is nothing short of significant.
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The Binance Transfer
Interestingly, soon after the XRP unlock, a significant XRP holder, known as “whale,” transferred nearly 20 million XRP, valued at more than $10 million, to the Binance cryptocurrency exchange. This transaction occurred in the wake of Ripple’s release of one billion XRP.
However, the release’s aftermath is more important. For the XRP price stability and On-Demand Liquidity (ODL) needs, Ripple normally returns a large majority of these funds back into escrow within a few days.
Meanwhile, the XRP community has been eagerly awaiting further updates from Ripple, especially following its recent legal victory against the U.S. Securities and Exchange Commission (SEC). Ripple CEO Brad Garlinghouse has confirmed that the company plans to celebrate its triumph with a party scheduled for September 29 in New York City.
XRP Price Action Analysis
Regarding XRP’s price action, some analysts have pointed to an ascending triangle pattern on the four-hour chart, suggesting a potential breakout of around 12% to reach $0.6. But looking at this bullish scenario it largely depends on the availability of sufficient liquidity, which may be achieved by the recent release of one billion XRP. XRP is currently trading at $0.50, down 3% in 24 hours from $0.504 to $0.528. The XRP community awaits how these developments will improve XRP usage and value in the coming days.
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With the recent victory, Ripple is sure they are not heading down but the question arises, How will Ripple’s release of one billion XRP affect the price to be seen?
Read More: Ripple’s 1 Billion XRP Unlock: A Sign of Strength or Weakness?