Ripple Unleashes 500,000,000 XRP from Escrow, Price Holds Steady at $0.50 – Upswing of 10% Incoming?
Ripple has released the next batch of XRP tokens, unlocking 500 million XRP from the escrow.
Although the release has previously raised investor jitters, but XRP prices remain stable and are tracking Bitcoin prices.
Ripple has unlocked a substantial amount of XRP, raising concern among XRP investors. The recent release is part of Ripple’s 1 billion monthly release strategy that aims to maintain liquidity and control supply in the market.
While these releases are crucial for maintaining market liquidity and fulfilling the needs of Ripple’s business partners, they can also lead to short-term price dips for XRP as the available supply increases.
The release of 500 million XRP, carried out in two bunches of 200 million and 300 million tokens, combined with the struggling XRP prices has stirred jitters among investors. The release does no favors for investors with the increased supply leading to a slowdown in demand.
Ripple acknowledges that these regular escrow releases can cause temporary price fluctuations for XRP. However, they remain committed to this strategy as it guarantees a steady supply of XRP to meet the needs of diverse use cases. Ultimately, this approach reflects Ripple’s long-term vision: to position XRP as a reliable and dependable asset for smooth international payments.
Ripple (XRP) Price Outlook
At the time of writing, XRP is trading for $0.4843 after an 11% drop in the last 24 hours. This is in trend with the rest of the market which has plunged led by Bitcoin which is down by a little over 5%. The recent price trend is a shock reaction to the political and security instability being experienced in the Middle East.
With cryptocurrency viewed as a hedge against traditional markets, smart money is taking advantage of the dip to accumulate tokens ahead of the next breakout.
Another key decider for price movement is the ongoing SEC v. Ripple case. As CNF reported, Ripple CLO Stuart Alderoty has highlighted the SEC’s latest loss in court where a judge ruled that if a buyer doesn’t suffer financial loss, the SEC isn’t entitled to disgorgement from the defendant. The ruling could play a big role in Ripple’s ongoing battle with the agency, with some reports claiming Gary Gensler is seeking to push for up to $2 billion from the blockchain payments company.
The conclusion of the case could also lead to greater investor interest. Specifically, institutional investors which could lead to the launch of an XRP ETF. Ripple CEO Brad Garlighouse has recently expressed optimism about the SEC approving more crypto ETFs. Garlinghouse is optimistic more crypto ETFs are imminent in the US but with no defined timeline.
XRP bulls will look to defend the $0.48 support position to ensure the altcoin can maintain its bullish momentum. On the higher side, the bulls will be looking to break above the $0.70 resistance level as it works its way to $1 and the $3.89 all-time high.
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Filed under: Bitcoin - @ April 14, 2024 6:00 pm