Ripple has released 1 billion locked XRP tokens from an unknown wallet. According to the whale-tracking site Whale Alert, Ripple released the tokens in two transactions of 500 million XRP each.
The recent action follows Ripple’s monthly routine when it unlocks tokens from a pre-timed Escrow system. Ripple designed its Escrow system to lock some amounts of XRP in a smart contract over a pre-programmed time. This system creates a predictable and stable XRP circulating supply.
The California-based fintech company has practiced this system monthly since 2018, except in November 2022.
Ripple Mobilizes Locked XRP Tokens For its ODL Services
Whale Alert captured the transaction on May 1 and highlighted the two transactions simultaneously. In detail, the first transaction, tagged “Escrow Execution #18,” released 500 million XRP to a Ripple-designated account.
Related Reading: Why This New Listing Could Push Dogecoin Price Above $0.1
The second transaction, tagged “Escrow Execution #21,” released 500,000,000 XRP tokens to another Ripple account, resulting in a balance of 1 billion XRP. At the time of the Escrow unlock, each 500 million XRP was worth $243.8 million.
Ripple mobilizes the fund to provide liquidity for its On-Demand Liquidity (ODL) partners. But the unlocked funds are still in Ripple accounts as of now. Following the usual pattern, when Ripple finally moves them for its ODL services, the remaining XRP tokens will return to Escrow.
After the February 1 billion token release round, Ripple relocked 600 million XRP in two transactions in Escrow. Notably, the fintech company sells the unlocked assets to ODL partners while it purchases XRP used for its operations from the free market.
According to the quarterly market report, over the last three months in Q1 2023, Ripple sold XRP tokens worth $2.93 billion to its ODL partners. The firm recorded a net sale of $361 million within the reported period.
XRP Price Outlook
The latest Escrow unlock transactions comes as XRP slipped from the $0.48 mark. The token is currently struggling to rebound. However, the odds are far beyond its momentum as the onslaught emanated from a market-wide downturn.
Over the past few weeks, XRP fought to break above the $0.50 price level but faced strong resistance at $0.48. On April 30, the token declined by 1.26%, closing the day at $0.4723.
XRP price has declined below $0.4723 to $40. 4649, with a 1.19% price drop over the past 24 hours. XRP price sentiment is currently bearish.
The token trades below the 50-day Simple Moving Average (SMA), flagging a sell signal. However, it trades above the 100 and 200-day Simple Moving Average, which flags buy signals.
Related Reading: Floki Inu Sees Double-Digit Gains Amid Market Downturn, Here’s Why
According to data from CoinCodex, XRP’s 200-day Simple Moving Average (SMA) has been flagging a buy signal since March 21. The token price has tanked below its crucial resistance levels and may be on its way to further decline if the bears remain in control.
Featured image from Pixabay and chart from Tradingview
Source: https://bitcoinist.com/ripple-unlocks-1-billion-xrp-from-escrow/