Millions of XRP Are Now in the Market! What Will Happen Now?

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In a significant move for the XRP community, Ripple continued its scheduled monthly release on October 1, releasing an additional 1 billion XRP tokens from escrow accounts. This unfolded in three separate transactions that added both excitement and skepticism to the market. Here are the details…

XRP tokens unlocked

In the first transaction, 400 million XRP tokens worth $205,914,675 were released from Ripple’s escrow account. Following this, another 100 million XRP tokens worth $51,478,668 entered the market. The latest transaction in this sequence revealed another half a billion XRP tokens, equivalent to 500 million tokens, with a market cap of $257,393,344. Ripple first implemented the escrow system in December 2017 to stabilize the XRP market. Under this system, Ripple has allocated 55 billion XRP divided into a series of escrows, each containing 1 billion XRP tokens and will be released monthly for 55 months. According to this timeline, the final tranche could see the light of day in December 2023.

Typically, approximately 800 million XRP tokens are returned to escrow and locked until the next month, while roughly 200 million XRP tokens are injected into the circulating supply. In the last 12 hours, Ripple also initiated the transfer of 75 million XRP tokens to an unknown wallet, raising curiosity about its destination. Despite some concerns and uncertainty surrounding the XRP market, the fifth-largest cryptocurrency started October on a positive note. XRP is currently trading in the green with hopes of a positive “October”. Surprisingly, despite taking profits and a bearish signal emerging on the last day of September, XRP ended the month with a marginal gain of 0.84%. As of the time of this writing, XRP was traded at $0.517, showing an increase of 0.25% in the last 24 hours.

Latest situation in Ripple price

Meanwhile, whale watching platform Whale Alert reported that 400,000,000 XRP tokens worth approximately $205,914,675 were unlocked from Ripple’s escrow. This news sparked mixed reactions within the XRP community, with some expressing concern that it could lead to a price drop. Several people have even stated their intention to short the altcoin due to this development. Contrary to these concerns, there was no significant drop in the price of XRP. CoinMarketCap data shows that the value of XRP increased by 0.09% in the last 24 hours and the cryptocurrency is trading at $0.5171. This falls within a range of 24-hour highs of $0.5196 and daily lows of $0.5149.

While the price of XRP has increased slightly, its 24-hour trading volume has fallen by more than 72% in the past day, remaining at approximately $472,013,661. However, the altcoin has seen a 1.62% increase in its price over the past week and a 1.76% gain on a monthly basis. When XRP’s daily chart is examined, it can be seen that a symmetrical triangle formation has formed in the last few weeks, indicating a potential breakout. Recent developments have shown that the price of XRP has risen above this formation and maintained its position above this formation at the time of writing.

What does technical analysis indicate?

From a technical perspective, there is optimism that XRP’s price could attempt to turn the $0.5515 resistance level into support, paving the way for a potential rise to $0.6683 next week, according to analyst Danielle du Toit. However, the possibility of recently unlocked tokens entering exchange platforms carries the risk of XRP selling off, potentially pushing the price towards the $0.4783 support level or lower, retesting the next support at $0.4120.

While the XRP community is watching these developments closely, the cryptocurrency market is divided on the impact of this important token release. The coming days will reveal whether XRP can maintain its positive momentum or face the challenges posed by a potential selling wave.

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