The company behind the development of XRP Ledger Rippleannounced that it will unlock 1 billion XRP tokens worth $628.5 million on April 1. This is part of Ripple’s monthly sell-off, which could negatively impact the XRP price in the coming weeks.
Historically, Ripple has been unlocking 1 billion tokens through escrows completed on the first of each month since 2017. April will be the beginning of a new era in which different calculations are used for XRP’s inflation than in the last few years.
According to XRPScan, as reported in the March unlock, the company was using ‘Ripple (22)’ and ‘Ripple (23)’ accounts so far.
Now, ‘Ripple (10)’ will unlock 100 million and 400 million XRP, while ‘Ripple (11)’ will perform two unlocks of 200 million and 300 million coins.
What Happened After Ripple Unlocked the XRP Token in March?
The escrow system unlocked 1 billion XRP from accounts ‘Ripple (22)’ and ‘Ripple (23)’ on March 1. Ripple then allocated 200 million tokens for the sale in March and re-locked the rest in escrow for July and August 2027.
However, the company spent 240 million XRP from the treasury account called ‘Ripple (1)’ in March, using its old reserves. The sales took place in two batches and were all sent to the same address, ‘rP4X2…Kxv3’.
As developed, Ripple transferred 200 million XRP to its reserves on March 1. Additionally, the payment protocol processed a transaction of 100 million Tokens on March 5 and a transaction of 140 million XRP on March 13.
XRP Price Analysis Amid Sell-Off
It is noteworthy how Ripple’s previous sell-off may have affected the price of XRP. Finbold placed each of the company’s year-to-date sales activity on XRP’s daily chart.
Interestingly, only two of the eight days showed a slight positive price movement. Still, it was below expectations.
At the time of writing, XRP is trading at $0.6285 and remains in a range above the $0.60 support and below the $0.65 resistance. Therefore, investors should closely monitor Ripple’s sales activity in April after it unlocked more than $628.5 million in tokens.
