1 Billion XRP Worth $970M Release: How’ll XRP Price React?

Ripple has unlocked 1 billion XRP worth approximately $970 million from its escrow, signaling a consistent monthly release pattern. While this move offers liquidity to the market, it raises questions about potential price volatility and short-term risks. Is XRP price poised for a major shift?

Ripple’s Escrow Address Releases 1 Billion XRP Yet Again

Ripple’s official escrow address, “Ripple 24” unlocked 1 billion XRP tokens, worth $970 million, on December 1.

The releases came in two bursts of 500 million XRP each to continue the company’s established monthly unlock schedule.

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But this predictable release plan has been in place since at least June, with two 500 million XRP unlocks happening on each first day of the month.

Its consistent unlocking of such a large volume of XRP proves Ripple’s strategy to keep liquidity and operational flexibility. These funds are used for operational expenses, liquidity support, or to fulfill strategic partnerships.

Given that both ETH and XRP receive such large amounts into the market nearly every day, there are questions about Ripple’s long-term distribution strategy as well as its possible effects on the XRP price.

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XRP tokens put into circulation also do not come without effects. The unlocks provide liquidity but come with new tokens on the market that can affect sentiment in the market.

The regular and large unlocks can impact short term price fluctuations if the tokens aren’t fully absorbed by the market.

XRP price Long-Term Risk Model Proves Accurate Despite Market Doubts

XRP price long-term risk model has proven right despite some market skepticism about how XRP’s price would move.

The model has proven that XRP is on low risk, recovering from dips in the market cycles. This model also makes sense historically, as we have seen periods of low-risk classification preceded by large rallies in price.

The reliable performance of this long-term risk model gives investors who adopt data-driven strategies an edge over their more emotion-valued counterparts, who tend to react to short-term market changes.

In a volatile market, we can often make better decisions by trusting objective models rather than human subjective sentiment. However, the model’s accuracy is strengthened as XRP continues to show strength in its recovery, suggesting the possibility for ongoing long-term growth.

Ripple’s regular escrow releases alongside XRP’s ambiguous short-term risk signals imply a cautious but potential market. Traders are advised to remain patient, as short-term volatility may present stronger growth opportunities in the future

XRP Short-Term Risk Hits Peak, Analyst Advises Patience Before Action

Recently, market analysis has flagged XRP’s short-term risk as high, with a high level reached. The risk index, which watches for price volatility and market sentiment, points to a very dangerous part of the market top.

In this stage, they say caution is required, still showing traders should wait to take any big action until they get further confirmation.

Although the short-term risk is elevated, the overall trend still looks strong, and some analysts propose watching for a bearish crossover before acting.

This is very much an approach of embracing technical analysis and waiting for those signs of reversion.

High short-term risks can be taken while waiting for a better entry point, which might lead to a more favorable outcome.

XRP Price Surges Above $2, $3 Next?

XRP price has recently breached the critical $2.00 milestone as it trades at $2.06, up by an impressive 8.32% over the past session.

The breakout is very important, as it has broken above a key psychological resistance level, which means strong bullish momentum.

Several technical indicators on the 4-hour chart indicate that the price will continue to move in the upward direction with the potential to extend even higher.

The bullish crossover is supported by a trending upward 50-day Simple Moving Average (SMA), currently at $1.57, which is well above the 200-day SMA seen at $0.96.

The MACD contributes to the bullish trend as well. The widening gap of the MACD line (blue) over the signal line (orange) showing increasing buying pressure and significant momentum.

Rising positive bars on the histogram further confirm that buying interest is growing. On top of that, the Money Flow Index (MFI) is at 80.48, indicating overbought territory.

This could indicate a temporary consolidation or pullback but also supports the market’s trust in XRP price’s continued rally.